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What is Partnership? Advantages and Disadvantages

According to section 4 of the Partnership Act of 1932, “It can be defined as the relation between two or more persons who have agreed to share the profits of a business run by all or any one of them acting for all”. This definition superseded the previous definition given in section 239 of Indian Contract Act 1872 as – “Partnership is the relation which subsists between persons who have agreed to combine their property, labor, skill in some business, and to share the profits thereof between them”. The 1932 definition added the concept of mutual agency.

Meaning and Definition of Partnership

According to J.L. Hauson___” A partnership is a form of business in which two or more persons up to a maximum of twenty join together to undertake some form of business activity.

According to Kimball___”  A partnership or firm as it is often called is, then a group of men who have joined capital or services for the prosecuting of some enterprise”.

Partnership Advantages

Disadvantages

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