In Australia a partnership is the relationship which exists between persons carrying on a business in common with a view to profit.
In the absence of an agreement between the partners, partnerships are regulated by the Partnership Acts of each state and territory of Australia.
Because a partnership is not a separate legal entity:
- each partner is the agent of the other partners and may make contracts, undertake obligations and dispose of partnership property on behalf of the partnership in the ordinary course of the partnership business
- arrangements between partners will protect partners in their relationship with each other. Third parties, without knowledge to the contrary, however, are protected from actions committed by partners beyond their authority