CHAPTER ONE

1.1         BACKGROUND OF THE STUDY

Partnership was defined in the partnership Act of 1890. This shows that partnership started in the olden days during the time of our fore fathers.  This partnership Act of 1890 has covered what partnership is all about and what it means to form a partnership. According to this Act, It can exist in the following ways.

1.            Where two or more persons decide to create a business. That is non of them processes an existing business.

2.            When an existing business decide to team up with one another.

3.            Where two persons, each caring on separate business as sole traders, decides to  amalgamate their respective concerns and form a partnership.

In Nigeria, past records shown that the first law that guided partnership is in section 454 of the companies Act of 1948. latter s. 119 of the company ;Act of 1967 was introduced.