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Partnership is the relation between persons who have agreed to share profits of a business carried on by all or any of them acting for all.
Mutual agency means each partner is an agent and principal—any partner can act on behalf of the firm and bind the other partners.
Partnership deed is a written agreement stating the terms and conditions of partnership among partners.
A sleeping (dormant) partner contributes capital and shares profits but does not take part in day-to-day management.
Registration of a partnership firm is generally optional, but it is advisable because non-registration creates legal disabilities.
Dissolution of firm means termination of partnership among all partners and closure of the business of the firm.
Partnership requires two or more persons who enter into an agreement to carry on a lawful business. There must be an intention of sharing profits (losses generally follow profit sharing unless agreed otherwise). The most important element is mutual agency, meaning the business is carried on by all or any one acting for all and each partner can bind the firm.
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