Indian Partnership Act of 1932 prescribes the law relating to a partnership firm in India. Partnership Act lays down the rights and duties of the members/partners among themselves and other legal relations between partners and any third persons, which are incidental to forming a partnership.
A partnership is a relationship between persons, agreed to share the profits of business activities carried on by all partners/members or any one of the partners/members acting for all. Therefore, a partnership firm contains three essential elements.
All these conditions must coexist before a partnership can come into existence.