How to - Partnership an agency

Partnership an agency

The third essential of a partnership is that a partnership business actually may be carried on by all the partners together or by any one or more partners for all and on behalf of the others, in which case each partner is an implied agent of the other partners. It is not. therefore, necessary that all the partners take part in the business of the partnership firm. Some partners can be active partners and others can be sleeping partners. But it must be clear that there is an implied or express agency constituted in favour of one partner by the other partners. If there is no element of agency, even if there is any agreement to share profits, there will be no partnership. So a partner has a double capacity, he is the principal so far as he is concerned and the agent so far as other partners are concerned.