There can be two kinds of partnership firms, namely (1) General partnership, and (2) Limited partnership. In a general firm, all partners have unlimited liability. Partnership as will, particular partnership and joint venture are the examples of general partnership. But in a limited firm, all partners except one may have unlimited liability in a limited partnership.



A brief description of various kinds of partnership is given below:

(i)    Partnership at Will. When a partnership is formed to carry on business without specifying any period of time, it is called partnership at will. Such a partnership can continue for any length of period as long as the partners are willing to continue it as such. It can be dissolved if any partner serves a notice to the firm withdrawing or terminating his partnership.

(ii)    Particular Partnership. A partnership established for a stipulated period or for the completion of a specified venture comes to an automatic end with the expiry of the stipulated period or on the completion of the specified venture, as the case may be.

(iii)    Joint Venture. It is organized for completing a specific project during a certain period. All the members of the joint venture are personally liable for its debts and obligations, but they do not have general agency rights. The rights of the members of a joint venture are defined by the agreement. However, a joint venture is not affected by the death of a member. No member can withdraw his membership form the joint venture before the completion of the specific project. The profits resulting from the joint venture are divided among the members in a ratio agreed upon by the members in advance.

(iv)    Limited Partnership. The liability of a partner in an ordinary partnership is unlimited which has proved a serious handicap for the growth of this form of business ownership. In order to cure this defect, the concept of limited partnership was introduced in England. There is no provision for the formation of such partnership in India.

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