“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.”
Features/Characteristics/Elements of Partnership:
- It can be Registered or Unregistered.
- There must be at least 2 persons.
- There must be an agreement between the people coming into a partnership firm. The agreement can be Oral or Written. A written agreement is called a Partnership Deed.
- There must be an existence of business or profit motive.
- There must be a relationship of Principal and Agent:
There exists a relationship of Principal and Agent between the Partners and the Firm AND among the partners themselves. A partner can bind the firm (other partners) by his acts, and a partner can be bound by the acts of the firm (other partners).
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