Partnership Definition and Legal Meaning

It is referred to the assiciation of two or more persons, also known as partners, with common interest to perform a business with a motive to make profit. Each partners invest time and money into the business and have individual responsibilities as decided in the a partnership deed created at the formation of business. Each partner is liable to the extent of personal assets unless the partners are limited in nature. The percentage share of profit and losses and other conditions to be followed is mentioned in the deed, which generally reflects the agreement made by all the partners collectively.Partnership agreement can also be based on the oral agreement.