Definition of Partnership (Section 4) requires: (1) Association of persons—two or more; (2) Carrying on business—commercial/professional activity; (3) View to profit—intent to make earnings; (4) Mutual agreement—contractual relationship. Partnership Agreement: Can be oral or written; written partnership deed preferred. Essentials: Partner names, business nature, capital contribution, profit sharing, partner duties, dispute resolution. Kinds: General partnership (all partners liable), Limited partnership (some partners have liability limits). Partnership by estoppel: If conduct suggests partnership, parties may be bound as partners. Case law: Mehra v. Bhardwaj establishes partnership requirements. Difference: Partnership creates contractual relationship between partners; creates agency relationship with third parties. For accountants, partnership deed critical for liability allocation; absence of deed results in statutory defaults. Understanding partnership definition essential for distinguishing genuine partnerships. Exam tip: Apply all four essential elements; distinguish partnership from mere co-ownership; identify partnership by conduct if no formal agreement exists.