“Partnership deed” is normally just another name for a partnership agreement that exists in writing. This is significant as it is possible for a partnership agreement to be formed entirely through oral agreement or through actions. For example, if different parties act as if they are in a partnership, then they may be legally considered to be in a partnership. A partnership deed would define all the terms of the partnership in writing, however, thus ensuring that the nature of the partnership is clear for all involved.
A partnership deed is often used for a partnership in business, where the exact terms involved in the partnership will likely be very significant to those involved.
This is significant not least because it is entirely possible that at some point in a partnership in business different partners will conflict and, without a deed of partnership, the rules will default to whatever is set forth in the Acts or codes of the state in which the partnership in business arose. Ultimately, in such a case, the different partners of the partnership in business might choose to sue each other in order to have the partnership interpreted in their favor.
A deed of partnership, however, might eliminate the need for all such action. A deed of partnership will ensure that all parties know exactly what their responsibilities are within the partnership along with what their particular powers are with regard to the partnership.