Meaning and types of partnership

A partnership is a type of business organisation in which two or more people join to conduct business. Further section 4 of the Indian Partnership Act, 1932 defines partnership as a relationship between two persons who mutually agreed to share the profits and losses in the business. A partnership is an agreement between two or more people to share profits or losses resulting from acts taken by all of them or by one of them acting on their behalf.The individuals who have joined into such an agreement are referred to as partners, and they give their collective business a name, which is called as firm name. It is important to note that a husband and wife running a business or members of a Hindu undivided family are not in partnership because their relationship in business is not based on a contract or agreement.

Types of partnership

•Partnership at will
The partnership is referred to as “partnership at will” when there is no written agreement between the partners on the duration of their partnership.The core of a partnership at will is that the partners do not agree on a duration for their partnership and are free to end it whenever they want. It is a partnership that can also be said to be indefinite as the dissolution of a partnership is not pre-planned and is only considered when it is necessary. It is up to the partners to agree on the length of time they are willing to work together.

Particular partnership
A particular partnership is one that is created for a specific period of time or for a specific undertaking.Such a partnership is usually formed between partners for the sole purpose of completing a project involving temporary contract-based labour or a specific business.
When the business partnership’s goal is accomplished, the partnership is generally dissolved. When the fixed term expires or the initiative is completed, than the partnership gets dissolved immediately. But it is important to note that the partners can choose to keep the partnership going by coming to an agreement.

Partnership for a Fixed Term:
The duration of the partnership is fixed, and it ends when the term expires. If the partners keep the business going after the predetermined period, it becomes a free-standing partnership.

•Limited Liability Partnership
A limited liability partnership (LLP) is a partnership in which some or all of the partners have limited liability. Each partner in an LLP is not responsible or liable for the misbehaviour or carelessness of another partner. It is important to note that LLP is not governed under Partnership act,1932, but is governed under Limited Liability Partnership Act, 2008.

Aishwarya Says:

I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.

If you are interested in participating in the same, do let me know.

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