partnership

The Partnership Act 1890 defines a partnership as the relationship that subsists between two legal entities carrying on a business in common with a view to profit. Accordingly, for a one to exist, a business must exist, which is carried on by two or more legal persons for profit. There is no single feature of a relationship of itself which will necessarily mean that a relationship constitutes a partnership.

If a partnership does subsist between parties, there is no requirement that the parties have expressly agreed (in writing or orally) that they will be a partnership – the status of the relationship is imposed by operation of law.

Usage: The partnership was held liable for the negligence of a single partner.

Related Words: unincorporated association; company; separate legal personality.