Definition of Partnership & Essentials Kinds of Partnership Partnership Property

Your uncle lends a tea-stall owner in Borivali fifty thousand rupees and takes a cut of the daily profit as interest. A salesman at the same stall gets a commission on takings. Are they partners? Both are paid out of profit, yet the law says that on its own this does not make either of them a partner. The Indian Partnership Act 1932 therefore has to answer a harder question than it first seems: what exactly turns a group of people into a firm, and what belongs to the firm once it exists?

In two minutes

A 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; it arises from contract, is proved by the real relation between the parties, and its property belongs to the firm's business.

The rest of this chapter

The full explanation, the cheat sheet, every previous-year question at every mark weight, the quiz and the answer skeletons are part of Contract – II on LexBlox Semester. Sign in to unlock the subject, or read Module 1 of Legal Language and Writing free.