Partnership LawTo constitute a partnership there must be three essentials ◦ There must be a business ◦ There must be an agreement to share the profits of that business ◦ The business must be carried on by all or any of the partners acting for allAdvantages Partnerships are relatively easy to establish With more than one owner, the ability to raise funds may be increased Prospective employees may be attracted to the business if given the incentive to become a partner A partnership may benefit from the combination of complementary skills of two or more people. There is a wider pool of knowledge, skills and contacts. Partnerships can be cost-effective as each partner specializes in certain aspects of their business. Partnerships provide moral support and will allow for more creative brainstorming.Disadvantages Business partners are jointly and individually liable for the actions of the other partners. Profits must be shared with others. Since decisions are shared, disagreements can occur. The partnership may have a limited life; it may end upon the withdrawal or death of a partner. A partnership usually has limitations that keep it from becoming a large business. A partner has to consult his partner and negotiate more as you cannot make decisions by yourself. A major disadvantage of a partnership is unlimited liability. General partners are liable without limit for all debts contracted and errors made by the partnership.