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A partnership is defined in the Partnership Act 1890, section 1(1) as ‘the relation which subsists between persons carrying on a business in common with a view to profit�. For the purposes of the Partnership Act 1890, persons acting in partnership are collectively called ‘a firm�. The terms ‘partnership� and ‘firm� are, to all intents and purposes, interchangeable.

Basically put, a partnership is an unincorporated association (although individual partners may be corporate bodies) in which the agreement between the parties is such that the relationship

• between themselves, and
• between themselves and third parties

is governed by the Partnership Act.

It is the sum of the members that is the ‘person�.