The meaning and definition of Partnership
A partnership is an association of two or more persons to carry on, as co-owners, a business and to share its profits and losses. The persons who own the business are individually called partners and collectively called partnership firm.
John A, Shubin: “Two or more individuals may form a partnership by making a written or oral agreement that they will jointly assume full responsibility for the conduct of business”.
According to Shubin two or more persons join together to share business responsibility. The liability part is mainly given as a base of partnership.
L.H. Haney: “The relationship between persons who agree to carry on a business in common with a view to private gain”.
Haney has given more emphasis on sharing of gains. The coming together of persons to share the gains of a business is called partnership.
Kimball and Kimball: “A partnership firm as it is often called, is then a group of men who have joined capital or services or the prosecution of some enterprise”.
The bringing toherher of financial resources and services by persons for carrying on some work has been called partnership in this definition. One person may contribute money, the other may provide service, meant to carry on an enterprise.
Willian R. Spriegal: “Partnership has two or more members, each of whom is responsible for the obligation of the partnership. Each of the partners may bind the others and the assets of the partners may be taken for debts of partnership”.
Spriegal has given a broad-based definition of partnership. Besides relationship of two or more persons, partnership gives implied authority to partners to bind the firm for their acts. The business liabilities cannot only be recovered from business property but also form partners’ assets. This brings in the unlimited liability aspect of partnership into picture.
English Partnership Act, 1690: “Partnership is the relation which subsists between persons carrying on a business in common with a view of profits.