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Indian Partnership Act, 1932 – First Unit 1. Introduction Before 1932, partnership law was part of the Indian Contract Act, 1872 . Because partnership needed special rules, a separate Act was passed. Indian Partnership Act, 1932 came into force on 1st October 1932 . Extends to the whole of India except Jammu & Kashmir (before 2019). Governs rights, duties, liabilities of partners, partnership firm, registration, and dissolution. 2. Definition of Partnership (Sec. 4) “Partnership is the relation between persons who have agreed to share profits of a business carried on by all or any of them acting for all.” Essential elements: Agreement between persons (oral or written). Carrying on business (trade, profession, or occupation). Profit-sharing – main test of partnership. Mutual agency – business carried by all or any one of them acting for all. 👉 Case Law : Cox v. Hickman (1860) – Profit-sharing is only evidence of partnership, but the real test is mutual...