1 A partnership is an arrangement between two or more persons carrying on business with a view to profit.
Partnerships can be loose arrangements or the terms can be in a written agreement known as a Deed.
Regardless of whether a written agreement exists, if the arrangement is clearly a partnership then the actions, powers and rights of each partner are controlled by the Partnership Act 1890. All partners are entitled to share equally in the capital and profits of the business and will be liable to contribute equally to any losses sustained by the business. A partner is not entitled to interest on the capital subscribed by him before the profits have been determined. Every partner can take part in the management of the business. No partner is automatically entitled to be paid for acting in the partnership business.