Partnership

An association of two or more people formed for the purpose of carrying on a business. Partnerships are governed by the Partnership Act (1890). Unlike an incorporated *company. A partnership does not have a legal personality, and therefore partners are liable for the firm’s debts. General partners are entirely liable for these debts, limited partners only to the extent of their investment. A limited partnership consists of both general and lim­ited partners and is governed by the Limited Partnership Act (1907). A part­nership-at-will is one for which no fixed term has been agreed. Any partner may end the partnership at any time provided that notice is given of the intention to do so to all the other partners. Nominal partners allow their names to be used for the benefit of the partnership, usually for a reward but not for a share of the profits. They are not legal partners. A partnership agreement usually governs partnerships.