Features of Partnership :

Based on the above definition, the essential features of partnership are as follows.

1. An association of two or more persons : To form a partnership, there must be atleast two persons. Regarding the maximum number
of persons, it is limited to 10 in banking business and 20 in other business.

2. Agreement between the Partners : The relationship among the partners is established by an agreement. Such agreement forms the basis of their mutual relationship.

3. Profit sharing : The agreement between the partners must be to share the profits or losses of the business.

4. Lawful business : The agreement should be for carrying on some legal business to make profit.

5. Business carried on by all or any of them acting for all : Partnership business must be carried on by all or any of them acting for all. Mutual and implied agency is the essence of partnership.