Partnership is the relation

between persons who have

agreed to share the profits of
a business carried on by all
or any one of them acting for
all

Association of persons - natural not artificial

An agreement may expressed or implied
Business Any trade, occupation or profession
Sharing of profit or loss
Carried on by all or any one
Unlimited liability

Types of partnership
Partnership at will- (Sec. 7)where time is not mentioned
in agreement
Particular partnership - (Sec. 8)partner in a specific
venture only
Partnership for fixed term - (Sec. 7)

Active partner- actually run the business

Sleeping or dormant partner contribute
capital and enjoys profit
Nominal partner he has no real interest
and does not contribute capital and not
entitled to enjoy profit.
Partner in profit- contribute capital and
enjoys profits only but not losses
Partner by estoppels or holding out- not a
real partner but represents the firm by
conduct or word spoken. He enjoys the profit
and shares the losses

Right to take part in business

Right to be consulted
Right to have access to the books of accounts
Rights to share the profits of the firm
Right to get interest on capital
Right to be indemnified by the firm against any
payment made or liability incurred
Right to use partnership property
Right to retire
Right to carry competing business

To work for common advantage

To be just and faithful
Render true account
To indemnify for fraud
Not to claim remuneration
To share profits and losses
To act within authorities given

Duties of partners:

A firm may be dissolved by any of the

following modes
Dissolution by agreement with the consent off
all the partners in accordance with the contra ct
Dissolution by notice partnership at will may
be dissolved by notice in writing to all partners
Dissolution by the court this may happen
due to insanity, insolvency or misconduct of a
partner or continuous loss or continuous
breach of agreement
Compulsory dissolution where all but one died
or became insolvent