Connect with Best Verified Coaching in India Find the best Verified coaching institutes in India , personalized to your needs.
For which entrance exam are you preparing? mandatory

Types of Partnership

Report Error
article image

A partnership arises whenever two or more people co-own a business and share in the profits and losses of the business. There are relatively five types of Partnership such as Partnership at will, Partnership for a particular venture, Partnership for a fixed period, Ordinary Partnership and Limited Partnership. Explanation about all these five Types of Partnership is given below.

Kinds or Types of Partnership

(1) Partnership at will – If the duration of the partnership has not been defined in the contract, and any partner can opt out when he so desires, it is deemed to be a partnership at will. According to Section 7 of the Indian Partnership Act, if the partners can terminate the partnership at any time at their will, such partnership is called ‘partnership at will’.

(2) Partnership for a particular venture – According to Section 8 of the Partnership Act, the partners engaged in ‘a particular business’ comprises a partnership for a particular venture. For example, two persons jointly take up a contract to construct a building. The contract is for a particular venture, and the moment the construction of the building is complete, the contract terminates, because the contract was made for a particular venture and expires with its completion.

(3) Partnership for a fixed period – If the partners make the contract for a fixed period, the contract is valid only for the specified period. For example, two hoteliers make a contract to provide hotel facilities to the visitors to an exhibition in Delhi which is for a period to two months and share the profit. The contract of partnership, in such case, would be for the fixed period of the duration of the exhibition, and would terminate when the exhibition is over.

(4) Ordinary partnership – A partnership made under the provisions of the Partnership Act, 1932 is deemed to be an ordinary partnership. Such partnership is the practice in India.

(5) Limited partnership – Where the liability of some partners is limited to their investment in the business, it is known as a limited partnership. Such partnership is entered into by such persons who are not interested in actively participating in running the business and do not want to assume any liability besides what they have invested in the business. The English Limited Partnership Act, 1907 defines a limited partnership as a partnership in which there is one or more than one person whose liability is not limited and also one or more than one person whose liability is limited to their investment in the business. Such type of partnership is not in practice in India.

Leave your vote

0 points
Upvote Downvote

Total votes: 0

Upvotes: 0

Upvotes percentage: 0.000000%

Downvotes: 0

Downvotes percentage: 0.000000%

This post was created with our nice and easy submission form. Create your post!

Like what you read? Give author a thumbs up?

Bookmark this article to read later, drop a remark in comment section and share with your friends..

  • 0
  • 0
  • 0
article image

Texas Review

(9 Review) | (9Rating)

article image


(234 Review) | (21Rating)

article image

UTAC Academy

(6 Review) | (0Rating)


blog image

Hey there!

Forgot password?

Forgot your password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.


    Processing files…

    Verify Yourself

    Report an Error

    Page Title : Types of Partnership

    Please let us know, if you found any error on this page, We will rectify it as soon as possible