Partnership in business is defined by the partnership Act ( 1890 : section 1 (1), as “the relation which subsists between persons carrying on a business in common with a view of profit”. Ti is thus, the incorporation or uniting together of two or more persons, who have homogeneous objectives of doing business and making profit. They contribute money or capital with which the business is stared and run.
Partnerships replicate an attempt at making the better of dual words in the sense that it seeks to stop the discrepancies of one –man business while securing the advantage of large capital.
A partnership must have a minimum number of two people and a maximum of twenty, as stated by the partnership Act of 180 and the companies and allied matters Act (CAMA) of 1990, section 19 (1). A partnership of expertise like doctors, engineers. Lawyers, accountants, bankers etc. are however excluded from the restriction and can have members exceeding twenty as provided by section 19 (26) of companies and allied matters Act of 1990.
Every partner can commit the company into contracts or any business agreement.The partnership also bears maximum liability for acts of any one partner except where stated otherwise, and known to the other party in the contract. Partners who commence business, share profits losses equally unless it is stated on the other hand. The profit losses that is been shared equally has been agreed by the two parties involved from the very beginning. Well the introduction of partnership in a business has gone a long way helping those who really want to go into some profitable business but couldn't because of their financial strength.