Meaning of Partnership at Will
A Partnership at Will is a form of partnership where no specific duration of the partnership is fixed, nor is there any provision regarding the determination of the partnership. According to Section 7 of the Indian Partnership Act, 1932, such a partnership exists when the agreement does not specify (a) the time period for its continuation, or (b) the conditions under which it will end. In simple terms, it continues indefinitely until the partners themselves decide to dissolve it. This provides flexibility, as partners are not bound for a fixed duration.
Rights and Dissolution
In a Partnership at Will, any partner can dissolve the partnership by giving notice in writing to all other partners as per Section 43 of the Indian Partnership Act, 1932. Once the notice is given, the partnership is dissolved from the date mentioned in the notice, or from the date when the notice is communicated. Unlike fixed-term partnerships, no penalty or breach of contract arises if a partner wishes to withdraw, since the law itself grants the right of dissolution without conditions.
Importance and Advantages
This type of partnership is useful when partners want freedom and flexibility in business relations. It avoids long-term obligations and allows partners to assess whether to continue together in business without binding themselves legally for years. However, the uncertainty of its duration may sometimes create instability. Thus, it is most suitable where mutual trust exists between partners, and where they prefer to retain autonomy rather than being tied to rigid terms.
Real-Life Example
Suppose three friends start a partnership firm for running a café but do not mention any duration or termination clause in their partnership deed. This is a Partnership at Will under Section 7. After a year, if one of the friends wants to exit, he can serve a written notice to the other two partners, and the partnership will stand dissolved on the date mentioned in the notice.
Mnemonic to Remember – “NND”
To easily recall Partnership at Will, remember NND:
- N = No fixed duration (Sec. 7 – no time limit given)
- N = Notice required for dissolution (Sec. 43 – written notice)
- D = Dissolves on date in notice (or when communicated)
So remember: “Partnership at Will = NND (No duration, Notice, Dissolves).”
About lawgnan:
Strengthen your understanding of the Meaning of Partnership at Will with simple notes, examples, and mnemonics at Lawgnan.in. Our study material explains Section 7 and Section 43 of the Indian Partnership Act, 1932, highlighting how such partnerships work, their dissolution by notice, and the flexibility they provide to partners. With quick revision tricks like NND (No Duration, Notice, Dissolves), Lawgnan makes learning easier for LLB students, judiciary aspirants, and law exam candidates. Visit Lawgnan.in today to access comprehensive law notes, past papers, and guides to ace your legal journey confidently.
