1. Partnership is an association of persons competent to enter into contracts. The aim is to carry lawful business.
2. All partnerships in India follow the Indian Partnership Act of 1932.
3. Accordingly the liability of every partner is unlimited.
4. Partners have joint and several liability. It means each partner is individually liable and jointly liable for the debts of the firm.
5. There is no difference between personal property and business property of the partners. In case business assets are not sufficient to pay debts, the personal property of each and every partner can be used.
6. If one partner is declared insolvent, his liability has to be borne by solvent partners.
7. Thus, in partnership, the liability of every partner of the firm is unlimited.
