1. Unlimited liability : The members of a partnership have unlimited liability, i.e. they are collectively and individually liable for the firm’s debts and obligations. So, if in case business assets are not adequate to repay liabilities, personal assets of all or any partner can be claimed by the creditors to realise the outstanding amount.
2. Contractual Relationship : The relation subsisting between partners is due to the contract, which may be oral, written or implied.
