PARTNERSHIP. A partnership exists wherever two or more persons combine their labor or capital, or both, with the in tention of securing the profits to be produced thereby, the terms upon which this is to be done are regulated by the agreement of the parties, and are generally, although not necessarily, expressed in a written instrument, called the Articles of Partnership ; of course, their private arrangements, although binding on them selves, cannot prejudice third parties, and are, therefore, in many particulars not binding upon them. Partners are agents for each other, and any one may bind the firm in transactions within the scope of the firm's business, and each one, whether he be known to the world or not, as in case of a dormant partner, is individu ally liable for the firm's debts. No arrangements among the partners themselves can alter these facts to the prejudice of third parties. Hence, no one should enter a partnership without re flecting that he commits the whole of his fortune to the integrity and intelligence of his associates, and, on the other hand, any one dealing with a partner in any matter within the scope of the firm's business, knows that he has the security, not only of the firm's property, but of the property of the individual partners, al though it is a general rule that only those who share in the firm's profits can be held liable as partners, still one without any share may be made liable by allowing his name to be used or himself to be held out to the world as a partner. It is, therefore, essential
that one retiring from a firm should not only advertise the disso lution in the papers, but should send special notice of his retire ment, by circular, to all persons who have been in the habit of dealing with the firm. There are statutes in most of the States which enable persons to contribute money loans or personal prop erty, as special partners, and limits their liability to their actual contribution.