A partnership is a group of individuals or entities who carry on a business or activity together, with the view to profit or receive income jointly. Generally, the partners each take part in managing and running the business.

In some situations, a court may find that a partnership has come into existence even if you did not intend to establish it. This may happen where there are two or more persons carrying on a business in common with each other, with a view to profit.

The partnership itself is not a separate legal entity, which means that all assets of the partnership are owned by partners jointly or according to the details in the partnership agreement. This also means that the partners themselves are not protected from personal liability in the event that something goes wrong, such as litigation is brought against the partnership, or the business becomes insolvent. Personal assets may be available to repay creditors in these circumstances.

In terms of control of the day to day affairs of the business, this is either shared equally among all partners, or a representative is duly authorised to execute agreements on the partnerships behalf.