Particular partnership
📘 Particular Partnership
Definition
A Particular Partnership is a partnership formed for a specific venture or purpose, existing only for the duration of that particular transaction or undertaking.
Key Features
Specific Purpose
The partnership is created for carrying out one specific business transaction or project, not for continuous or general business.
Limited Duration
The partnership exists only as long as the particular business or venture lasts.
Limited Liability for Partners
Usually, partners are liable only for the obligations incurred in that specific venture.
Termination on Completion
The partnership automatically dissolves once the particular venture is completed or the transaction ends.
Profit Sharing
Profits and losses are shared based on the agreement for that specific venture.
Example
Two persons agree to buy and sell a particular consignment of goods together. They form a particular partnership only for that transaction. Once the goods are sold and accounts settled, the partnership ends.
Legal Position under Indian Partnership Act, 1932
The Act recognizes particular partnerships as partnerships formed for specific purposes.
Such partnerships are temporary and dissolve automatically once the particular business is completed.
Difference from General Partnership
| Particular Partnership | General Partnership |
|---|---|
| Formed for a specific, single venture | Formed for ongoing business activities |
| Exists only for the duration of that venture | Continues until dissolved by partners |
| Liability limited to the particular venture | Liability extends to all business dealings |
| Automatically dissolves after venture completion | Dissolution requires agreement or law |
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