JAIIB LRAB Unit 49 - Definition, Meaning and Nature Of Partnership

JAIIB LRAB Unit 49 - Definition, Meaning and Nature Of Partnership (Year: 2019)

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.




  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'


  1. 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


  1. 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.

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