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general partnership

n. A business partnership in which each partner is liable for the firm's debts.

General partnership

In most countries, a general partnership (the basic form of partnership under common law) is an association of persons or an unincorporated company with the following major features:

  • Created by agreement, proof of existence and estoppel.
  • Formed by two or more persons
  • The owners are all personally liable for any legal actions and debts the company may face, unless otherwise provided by law or in the agreement.

It is a partnership in which partners share equally in both responsibility and liability.