Chapter II - The Nature of Partnership
Section 7
Section 7: Partnership at will
A partnership is at will where the partners have set neither a duration nor a method for determining it.
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Need advice on Section 7?
This article is for general information. Refer to the Indian Partnership Act, 1932 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
Where no provision is made by contract between the partners for the duration of their partnership or for the determination of their partnership, the partnership is “partnership at will”.
Introduction
Section 7 defines a partnership at will by the absence of contract terms fixing its duration or its determination.
Read the deed as a whole before treating a firm as at will, because Section 43 gives a specific written-notice route for that category.
Key takeaways
Duration test
Check whether the agreement fixes a term.
Determination test
Also check whether the agreement provides how the partnership ends.
Review the deed
Look for an end date, defined venture or contractual dissolution mechanism. A label alone should not replace the statutory test.
Illustration
If two partners agree to trade indefinitely and provide no method to determine their partnership, Section 7 may describe their firm as a partnership at will.
Check deed and state law
Check the partnership deed for duration and termination terms, and any applicable state amendment, before classifying this firm as at will.
Practical checklist
Do
- Keep the signed deed and amendments.
- Check Section 43 before giving a dissolution notice.
Avoid
- Do not assume every partnership without an end date is at will if another determination clause exists.
Frequently asked questions
Can an oral agreement affect the test?
Section 7 refers to the contract between partners; establish the actual terms before classifying the firm.
Why does the classification matter?
Section 43 provides dissolution by written notice specifically for a partnership at will.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026