Introduction

Partnership at Will (Section 7)

Where no provision is made by contract between the partners for the duration of their partnership, or for the determination of their partnership, the partnership is, partnership at will.

Two conditions are to be complied with before partnership can be regarded as a partnership at will.(i.e. duration & determination as stated above). If either of these provision exist, there is no partnership.

K. Thiagarajah v. Muthappa : There is no partnership at will where there is in the contract of partnership an express or implied provision as to its duration or its determination.

Suresh Kumar Sanghi v. Amrit Kumar Sanghi : The essence of partnership at will is that it is open to either partner to dissolve the partnership by giving notice.

Gulab Singh v. Guttulal : if a partnership which was originally for a fixed term is continued after the expiry of the term would be regarded as a partnership at will.

Particular partnership (Section 8)

This definition of “partnership at will” is used in other sections, in particular section The expression “partnership at will” has always been used in the law of partnership and has always had the same meaning that stated in this section 7.

A person may become a partner with another person in particular adventures or undertakings.

This section was inserted to meet cases which are probably much more frequent in India. As stated in Suganmal v. Mt Umraobai all the requisites of a partnership must be present before a transaction between two persons limited to a single adventure is held to be a partnership.

This section is intended to show that even a single adventure may constitute a “business” as defined under section 2(b), for the purposes of a partnership business.

Where an adventure becomes illegal, the firm is compulsorily dissolved (ref : sec 41-b).