In force2023 Revised EditionCurrent version · 2023 Revised EditionSee versions on Attorney General's Chambers(opens the publisher’s site)
Contracts Act · 2023 Revised Edition · Part · Partnership
Contracts Act · 2023 Revised Edition · Part · Partnership
Official textFrom Attorney General's Chambers, unchanged
“Partnership” is the relation which subsists between persons who have agreed to combine their property, labour or skill in some business and to share the profits thereof between them.
Persons who have entered into partnership with one another are called collectively a “firm”.
Illustrations
A and B buy 100 bales of cotton, which they agree to sell for their joint account;
A and B are partners in respect of such cotton.
A and B buy 100 bales of cotton, agreeing to share it between them. A and B are not partners.
A agrees with B, a goldsmith, to buy and furnish gold to B to be worked up by him and sold and that they shall share in the resulting profit or loss. A and B are partners.
A and B agree to work together as carpenters but that A shall receive all profits and shall pay wages to B. A and B are not partners.
A and B are joint owners of a ship. This circumstance does not make them partners.
Contracts