Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.
Persons, who have entered into partnership with one another are called individually ‘partners’ and collectively a ‘firm’ and the name under which their business is carried on is called the firm’s name.
The contract between the partners may be oral or written.
? The partnership must be formed to carry on some lawful business.
? The business must be carried on to earn and share the profits and returns of the business.
? There must be a mutual relation of ‘agency’ between the partners.
TYPES OF PARTNERSHIP
1. Partnership at will
Where no provision is made by a contract between the partners for the duration of their partnership or for the determination (i.e. the termination or end) of the partnership ? the partnership is known as ‘partnership at will’
2. Partnership for a fixed period
When two or more persons enter into a partnership agreement for a fixed period of time, it is known as a partnership for a fixed term
3. Particular partnership
Such partnership is entered into, for completing a particular job or assignment taken up by two or more persons jointly and to share the profits arising there from.