Question

There are already two partners. If they wanted to add another partner to the agreement (Limited Partnership), would this be a new partnership? or continuation of the original?

Answer 1

In an existing partnership firm, a new patner may be admitted with the consent of all the partners. When a new partner is admitted, changes are made in the deed and a new deed will prepared. This is called reconstitution of a partnership firm.

A new partnership is not said to be formed with mere admission of a partner. It is just a continuation of the original partnership and is called reconstitution of partnership. There will be changes in the partnership but is not a new partnership.