Core concepts
- 01Partnership = relation between persons agreeing to share profits of business carried on by all or any acting for all.
- 02Essential elements: agreement, profit-sharing, business, mutual agency.
- 03Registration not compulsory but unregistered firm cannot sue third parties (Sec 69).
- 04Implied authority of partner extends to acts in usual course of business.
- 05Dissolution: by agreement, compulsory, contingency, notice, court order.
Flowchart summary
Partnership Firm | +-- Registration (optional but vital) +-- Implied Authority +-- Liability: joint & several +-- Dissolution | +-- By Agreement / Notice / Court / Compulsory
Exam-critical pointers
- ⭐Sharing of profits is prima facie evidence — not conclusive proof of partnership.
- ⭐Sec 69 — unregistered firm: cannot sue partners or outsiders, but can be sued.
- ⭐Minor admitted to benefits only (Sec 30); not personally liable.
- ⭐LLP Act 2008 is separate from Partnership Act 1932 — LLPs have perpetual succession.
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