LAW

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​KembaraXtra – Legal Terms – Partnership


A partnership is an association of two or more persons formed for the purpose of carrying on a business with a view to profit.


Partnerships are principally governed by the Partnership Act 1890 and, unlike incorporated companies, they do not possess a separate legal personality.


Because the partnership itself is not legally separate from the partners, the partners are personally liable for the debts and obligations of the firm.


A limited partnership, governed by the Limited Partnership Act 1907, includes general partners with unlimited liability and limited partners whose liability is restricted to their investment unless they participate in management.


A partnership at will exists where no fixed duration has been agreed, allowing any partner to dissolve the partnership by giving notice to the others, subject to the partnership agreement.
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