Partnership at will
📘 Partnership at Will
A Partnership at Will is a type of partnership where there is no fixed duration or specific provision regarding its termination in the partnership agreement. It continues as long as the partners wish, and it can be dissolved at any time by any partner giving notice to the others.
🔑 Key Features of a Partnership at Will
| Feature | Description |
|---|---|
| No Fixed Term | The partnership agreement does not specify any time duration for the partnership. |
| No Specific Purpose | The partnership isn’t formed for a particular venture that ends upon completion. |
| Voluntary Continuation | It continues solely based on the will and mutual consent of the partners. |
| Dissolution by Notice | Any partner can dissolve it by giving written notice to the other partners. |
🏛 Legal Definition (India Example – Section 7 of the Indian Partnership Act, 1932)
"Where no provision is made by contract between the partners for the duration of their partnership, or for the determination of their partnership, the partnership is ‘partnership at will’."
Similar definitions apply in common law systems around the world.
🧾 Dissolution of a Partnership at Will
A partnership at will can be dissolved:
By mutual agreement of all partners.
Unilaterally by any partner, by giving a written notice of intention to dissolve the firm.
Upon the death, insolvency, or retirement of a partner (if no contrary agreement exists).
✅ Example:
Ali and Ben enter into a partnership to run a bookstore. They don’t fix any time period or define when it should end. This is a partnership at will. Later, if Ben wants to leave, he can send a written notice and dissolve the partnership.
⚖ Key Differences (Compared to Other Types)
| Type | Duration Defined? | Purpose Defined? | Dissolution Method |
|---|---|---|---|
| Partnership at Will | ❌ No | ❌ No | By notice or mutual consent |
| Particular Partnership | ❌ No | ✅ Yes (specific project) | Ends when the project is completed |
| Fixed-Term Partnership | ✅ Yes | ❌/✅ May or may not | Ends after the term unless renewed |
📝 Conclusion
A partnership at will is the most flexible form of partnership. It suits those who want to keep their business arrangement open-ended, without legal complexities around timelines or fixed commitments.
Do write to us if you need any further assistance.
RELATED Blog
0 comments