‘Partnership’ is the relation between persons who have agreed to share the profits of a business carried on by all or any of the macting for all. Persons who have entered into partnership with one another are called individually ‘partners’ and collectively ‘afirm’, and the name under which their business is carried on is called the ‘firmname’.
Elements of Partnership :
Association of Two or More Persons :
Partnership is an association of 2 or more persons. Again, only persons recognized by law can enter into an agreement of partnership. Therefore, a firm, since it is not a person recognized in the eyes of law cannot be a partner.
It may be observed that partnership must be the result of an agreement between two or more persons. There must be an agreement entered into by all the persons concerned.
First, there must exist a business. For the purpose, the term ‘business’ includes every trade, occupation and profession. Secondly, the motive of the business is the“acquisition of gains” which leads to the formation of partnership.
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