Creation of partnership
Partnership is created by an agreement. The partnership agreement may be made orally or in writing or may be implied from the course of dealings among persons concerned. All the essential elements of a valid contract must be present.
There must be free consent, lawful object and the partners must be competent to contract. In respect of the formation of a partnership the following points should be noted:
a. minor being incompetent to contract cannot become a partner in a firm, but if all the partners agree, he may be admitted to the benefits of partnership.
b. no consideration is required to create a partnership.