Partnership Deeds at a Glance
Deeds are usually drafted in the real of real estate, though they do have other applications elsewhere. An example would be a deed of partnership. A partnership deed, also known as a partnership agreement, is a legal document that is used in the business world when two or more parties will decide to form a new business or company. A partnership deed will provide the details such as the responsibilities, rights, and liabilities of those involved in the agreement. A deed of partnership can be equivocated to be similar to the articles of incorporation in terms of the overall purpose, though a partnership deed is not considered to be a public document.
A deed of partnership will prove to a central legal document for it will outline the relationship that business partners will have among each other, and thus, a deed of partnership essentially provides for the core structure as to how a business or company is to develop from within. Furthermore, on a legal stance, a partnership deed will help establish how all partners are to be taken care, so as to avoid any potential internal conflicts and avoid legal action.
A partnership deed can also provide for clauses regarding how ownership of the company is to be distributed among the involved parties. This can play an important role in the case that one of the partners is dissolved from the partnership due to not conforming to the agreement or because of death.