Five essential elements of partnership in business
Essential elements of partnership in business are given below: This definition contains five elements which constitute a partnership, namely: (1) There must be a contract; ADVERTISEMENTS: (2) Between two or more persons; (3) Who agree to carry on a business? (4) With the object of sharing profits; and ADVERTISEMENTS: (5) The business must be carried on by all or any of them acting for all (i.e., there must be mutual agency). All the above elements must coexist in order to constitute a partnership. If any of these is not present, there cannot be a partnership. We now discus these elements one by one: Image Source:electronicsb2b.efytimes.com 1. Contract: Partnership is the result of a contract. It does not arise from status, operation of law or inheritance. Thus at the death of…