Classification of Partnership
1.) As to the extent of its subject matter
Universal Partnership
The object is vague and indefinite
contemplating a general business with
some degree of continuity
Contribute all of their present properties
with the intention of dividing properties as
well as the profits among themselves
Movable or immovable property which each
of the partners may possess at the time of
the celebration of the contract shall
continue to pertain exclusively to each, only
the unsufruct passing to the partnership
2.) As to liability of the partners
General Partnership
All partners are general are general
partners
General partners have unlimited liability and
full control in the business
The general partners have joint and several
liabilities, with an equal share of profits and
liabilities. It means that they are both
accountable for any debts, responsibilities,
and liabilities within the partnership.
3.) As to its duration
Partnership at will
No time is specified and is not formed for a
particular undertaking venture
May be terminated at any time by mutual
agreement of the partners or by the will of
any one partner alone
4.) As to the legality of its existence
De Jure Partnership
All legal requirements are complied for its
establishment
A matter of law
5.) As to representation to others
Ordinary or real partnership
Particular Partnership
The object is limited and well defined,,
being confined to an undertaking of a single
temporary or nature
Formed to accomplished one particular task
Formed for the acquisition of an immovable
property for the purpose of reselling it at a
profit or for the common enjoyment of its
use
Limited Partnership
Formed by two or more persons having as
members one or more general partners and
one or more limited partners
Limited partners have limited liability and
not liable for the obligations of the
partnership.
The limited partners are mostly focused on
contributing money, but they are less liable
for any debts and liabilities. They are allowed
to participate without any risk.
Partnership with a fixed term
The term for which the partnership is to
exist is fixed or agreed upon or one formed
for a particular undertaking
Upon the expiration of the term, the
partnership is dissolved, unless continued
by the partners
De Facto Partnership
Failed to comply with all the legal
requirements for its establishment
Informal business arrangement
Ostensible partnership or partnership by
estoppel
 They are exist among the partners and third Not a partnership in reality but they
person considered a partnership only in relation or
perspective of others.

They are the one who decide and present This is developed when a single person’s
themselves to the public in establishing the actions assume that the partnership will be
partnership. place where in the idea of estoppel state
that no one cannot change a statement if its
already stated.
They are liable for debts and liabilities in the If they show up themselves as partners
partnership and each partner carries their they are accountable for the partnership
liability for the debts of the partnership. agreement. They prohibited in denying the
existence of partnership to others.

6.) As to Publicity
Secret Partnership Open or notorious partnership
Existence of certain persons as partners is Existence is made known to the public by
not known to the public by any of the the members of the firm
partners

7.) As to purpose
Commercial or trading partnership  It formed for the transaction of the
business
 It is established to engage in
different business activities like retail,
manufacturing and other businesses
to generate their revenue.

Professional or non-trading partnership  Form for the exercise of profession.

 Offering advice and expertise in
respective fields and help in
maintaining the professional
standards and ethics, provides
effective skills, resources and
solutions for the needs of clients.

Kinds of Partners
Original partner  Members in partnership from the
time of its organization
 They help the business to achieve
the goal and objectives
 Responsible in every policies,
procedures and structure of the
business

Incoming partner  They are people who join the

existing partnership as a member
after it was formed.
  They are the one who familiarizing
themselves in the structure of
partnership

Retiring partner  They are the one who draw or exit in

the partnership. They exit the
partnership due to any reason or
circumstances.