Categories in which duration of partnership may be classified from the duration point of view are given below:
1. Partnership at will:
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’ (Sec. 7).
ADVERTISEMENTS:
Thus, the essence of a ‘partnership at will’ is that the partners do not fix any term of partnership and are free to break their relationship at their sweet will. It is a partnership for an indefinite period.
Such a partnership may be dissolved by any partner by giving a notice to that effect to all the other partners [Sec. 43(1)].
It may be noted that if this freedom to dissolve the firm at will is curtailed by agreement, say, if the agreement provides that the partnership can be dissolved by mutual consent of all the partners only, it will not constitute a ‘partnership at will.’
Image Source:ichef.bbci.co.uk
ADVERTISEMENTS:
2. Particular partnership:
When a partnership is formed for a particular period or for a specific venture, e.g., for working a coal mine or producing a film, it is called a ‘particular partnership’ (Sec. 8).
In such a case the partnership is automatically dissolved at the expiry of the fixed term or on the completion of the venture (Sec. 42).
Before such time the partnership would not be dissolved unless all the partners agree to it (Sec. 40). If the partners decide to continue such a partnership even after the expiry of the fixed term or the completion of the specific venture then it becomes a ‘partnership at will.’