Sections 7 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 7 says a partnership is a "partnership at will" when the partners have made no provision by contract for how long it lasts or how it ends. Section 8 says a person may become a partner with another in particular adventures or undertakings, which is the basis of what is called a particular partnership.
If the partners' contract is silent on both the duration and the determination of the partnership, the partnership is at will (section 7). A person may also become a partner in particular adventures or undertakings (section 8). Both sections turn on what the partners have agreed, so the partnership deed can fix the term, set out how the firm ends, or limit the firm to a single venture. Where the deed says nothing on duration and ending, section 7 supplies the label.
Section 7: partnership at will
Section 7 is a single sentence with two conditions. A partnership is a partnership at will where no provision is made by contract between the partners:
- for the duration of their partnership, or
- for the determination of their partnership.
| Situation | Result under section 7 |
|---|---|
| Contract says nothing about how long the firm lasts and nothing about how it ends | Partnership at will |
| Contract fixes a term (for example, five years) | Not at will on the face of section 7, because a provision for duration exists |
| Contract says how the firm will end (for example, on a stated event or on notice) | Not at will on the face of section 7, because a provision for determination exists |
The text puts the two limbs as: no provision for duration, or for determination. If a deed deals with only one of them, check its wording and the official text. A clear partnership deed should state both points so there is no doubt.
What "at will" means in practice
The section itself only gives the label. It does not set out the consequences. The Act deals with the ending of a partnership at will in its later provisions on dissolution; see our article on sections 42–43, dissolution on contingencies and by notice. Section 17(b), which we cover in sections 16–17, also uses the idea: where a firm formed for a fixed term carries on after the term expires, the partners' rights and duties stay the same as before, so far as they are consistent with the incidents of a partnership at will.
For a plain-language comparison of the two kinds of firm, see partnership at will versus partnership for a fixed term.
Example. Kiran and Lata start a tailoring business and sign a short deed that covers capital and profit shares in the ratio 50:50, but nothing about the number of years or how the partnership may end. Under section 7, this is a partnership at will. If they had written "this partnership shall continue for five years", the contract would have made a provision for duration.
Can the deed change this?
Yes, in the sense that section 7 applies only where no provision is made by contract. The partners control the outcome by making a provision. Adding a term clause, or a clause on how the firm may be ended, takes the case outside the description in section 7. For clause drafting, see our partnership deed guide, or ask us about partnership deed drafting.
Section 8: particular partnership
Section 8 reads, in full, that a person may become a partner with another person in particular adventures or undertakings.
What the text tells us:
- Partners need not agree to run a general, continuing business. They may join for a particular adventure or undertaking.
- The scope is chosen by the partners. The section does not list what counts as an adventure or undertaking, and it does not set any time limit or any minimum number of ventures. The text is silent on these.
- The label "particular partnership" is the section's heading in common usage; the operative words are "particular adventures or undertakings". The text does not define the term further.
Because the section is so short, everything else comes from the rest of the Act and from the partners' contract. The same duties and rights that apply to partners generally also apply here, subject to the contract between the partners. Section 17(c) adds a rule for a firm formed to carry out one or more adventures or undertakings that goes on to carry out other ones: the partners' mutual rights and duties for the other undertakings are the same as for the original ones.
Example. Ahmed and Brinda agree to buy a plot, build ten flats on it, and sell them, sharing profit equally. They are partners for that particular undertaking. If they later take up a second project on the same terms and nothing in the contract says otherwise, section 17(c) applies the same mutual rights and duties to that second project.
Practical points
- Always state duration and exit. Silence on both leaves the firm at will under section 7.
- Name the venture. For a particular partnership, describe the adventure or undertaking in the deed so that everyone knows what the firm is for. The Act itself leaves the description to the partners.
- Consider registration. Whether the firm is at will or for a venture, registration is a separate step run by your State's Registrar of Firms; see partnership firm registration in India.
- Check the contract, then the Act. Section 7 depends on what the contract provides, so read the deed first.
Need help drafting the term and exit clauses?
A deed that is silent on duration and ending leaves the firm at will. If you want a fixed term, a venture-specific scope or a clear exit route, our team can prepare partnership deed drafting tailored to your arrangement.
Key takeaways
- A partnership is at will where the partners' contract makes no provision for duration or for determination (section 7).
- The partners can avoid that result by making such provisions in the deed.
- A person may become a partner in particular adventures or undertakings (section 8).
- Section 8 sets no time limit or definition of "adventure"; the text is silent.
- Section 17(c) carries the mutual rights and duties over to other undertakings the firm takes up.
Read next
- Sections 5 and 6: partnership not created by status and how existence is determined
- Sections 9 and 10: general duties of partners and indemnity for fraud
- Partnership at will versus partnership for a fixed term
- Partnership deed: key clauses, format and drafting
Disclaimer: Based on the text of the Indian Partnership Act, 1932 as consulted on 1 October 2026. Several States have amended the registration chapter and make their own rules, forms and fees for the Registrar of Firms. This article is general information, not legal advice; check the official text and your State's rules before acting.