An agreement between two or more individuals who would like to manage and operate a business together in order to make a profit is a partnership deed. A Partnership Agreement is a legally binding document and allows the partners to structure the relationship in a way that suits their particular business. It typically establishes the right to share in profits or losses for each partner, the responsibilities of each partner, and proper procedures for changes to and termination of the partnership.
Deed is basically the written agreement which consists the essential details of the firm and mutual agreement between partners related to Profit Sharing, Remuneration of Partners etc. The rights and duties specified in deed become undisputable responsibility and duty of Partners. Partnership deed is a legal agreement enforceable in court of law.
A partnership deed contains information like name of the firm, purpose of the Partnership, legal names and address of Partners, their capital contributions, ownership interest, Profit/Loss distribution, Management and voting requirements etc. The Partnership Act, 1932 is the law governing partnerships in India. For systematic and organised working of a firm it is suggested that a firm should have a written partnership deed..