Partnership Legal Meaning and Definition

Here is a simplified definition of the legal term Partnership.

Partnership (noun): A legal term describing the relationship between two or more individuals, known as partners, who agree to engage in a business venture with the aim to generate profit. These partners contribute resources such as money or time to the business, bearing both responsibilities and risks according to the details outlined in a document called a "partnership deed". This deed typically specifies each partner's share of profits or losses and other conditions of the business. Each partner can be legally accountable for the business and its debts, potentially to the extent of their personal assets, except in some kinds of partnerships known as "limited partnerships". A partnership can be formed through verbal or written agreement.