Chapter II - The Nature of Partnership
Section 8
Section 8: Particular partnership
Section 8 allows persons to become partners for a particular adventure or undertaking, such as a single project, instead of a continuing general business.
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Need advice on Section 8?
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
A person may become a partner with another person in particular adventures or undertakings.
Key takeaways
Limited-purpose partnership
Persons can agree to be partners only for a specific adventure or undertaking while staying independent in their other business.
Ends with the undertaking
Subject to contract, a firm constituted to carry out adventures or undertakings is dissolved when they are completed (section 42(b)).
How a particular partnership works
A partnership need not cover the whole of a person's business. Two persons can be partners for one project and remain independent in everything else. The definition in section 4 still applies to the particular adventure: there must be an agreement to share its profits, with the business carried on by all or any of them acting for all.
What happens when the project grows or ends
If the firm takes on further adventures or undertakings, section 17(c) provides that, subject to contract, the partners' mutual rights and duties in respect of them are the same as for the original ones. Under section 42(b), again subject to contract, a firm constituted to carry out one or more adventures or undertakings is dissolved by their completion.
Hypothetical business example
Hypothetical: Two contractors agree to bid for and carry out one building contract together and to share its profits. They are partners for that contract only. When the contract is completed, the firm is dissolved under section 42(b) unless their agreement provides otherwise.
Check the applicable state law
The India Code consolidated central text (as on 7 July 2025) records no State amendment to section 8, although several States have amended other sections of the Act, mainly those on registration of firms. Confirm the law of the State where the firm carries on business, and the firm's own partnership agreement, before acting.
Practical checklist
Do
- Define the adventure or undertaking precisely in the agreement, including when it will be treated as complete.
- State whether the partnership will extend to further projects the partners take on together.
Avoid
- Do not assume a project partnership extends to the partners' other businesses.
- Do not leave completion, exit and settlement terms undefined.
Glossary
- Adventure or undertaking
- A specific venture or project, as distinct from a continuing general business.
- Particular partnership
- A partnership limited to particular adventures or undertakings under section 8.
Frequently asked questions
Can a partnership be formed for one project only?
Yes. Section 8 permits a person to become a partner with another person in particular adventures or undertakings.
What happens when the project ends?
Subject to contract between the partners, section 42(b) dissolves the firm on completion of the adventures or undertakings it was constituted to carry out.
What if the partners take on another project?
Subject to contract, section 17(c) applies the same mutual rights and duties to the additional adventures or undertakings.
Need help applying this provision to your situation?
Contact BizeneedLast updated 11 October 2026