Differentiate between Partnership Agreement and Trust Deed.

Partnership Agreement Trust Deed 1. Partners, as mentioned in the agreement runs the partnership firm. The procedure to admit a partner in the firm mentioned in the deed. 1. Trustees are generally appointed or elected. Procedure to elect/appoint the trustees is set out in the Trust Deed 2. A partnership deed can be between two or more persons. Maximum number of partners in a partnership firm can be 50 partners. 2. Three parties must be involved with any deed of trust: Trustor: This party is the borrower. A trustor is sometimes called an obligor. Trustee: As a third party to a deed of trust, the trustee holds the property's legal title. Beneficiary: This party is the lender. 3. The deed may mention a fixed term of partnership or for a specific undertaking, or may mention the condition of dissolution by notice of intention to dissolve, if mutually agreed by the partners. 4. Trust deed can provide for trust to be wound up within certain number of years. 5. The deed states the rights and duties of the Partners. Partners owe a fiduciary duty to each other, based loyalty, trust and confidence 5. The Trust Deed states the rights and duties of the Trustees as well as Beneficiaries. Trustees have fiduciary duties to beneficiaries 6. Expectations of partner are more limited to financial success of business ventures. More easily measured. 6. Expectations of trustees can be high difficult to satisfy beneficiaries with so many choices on where to spend income.