The general rule is that every person of sound mind, and not otherwise restrained by law, may enter into a contract of partnership. There are several kinds of partners:

1. Ostensible partners, or those whose names are made public as partners, and who in reality are such, and who take ail the benefits and risks.

2. Nominal partners, or those who appear before the public as partners, but who have no real interest in the business.

3. Dormant, or silent partners, or those whose names are not known or do not appear as partners, but who, nevertheless, have an interest in the business.

4. Special, or limited partners, or those who are interested in the business only to the amount of the capital they have invested in it.

5. General partners, who manage the business, while the capital, either in whole or in part, is supplied by a special partner or partners. They are liable for all the debts and contracts of the firm.

A nominal partner renders himself liable for all the debts and contracts of the firm.

A dormant partner, if it becomes known that he has an interest, whether creditors trusted the firm on his account or not, becomes liable equally with the other partners.

The regulations concerning special or limited partnerships, in any particular State where recognized, are to be found in the statutes of such State; and strict compliance with the statutes is necessary in order to avoid incurring the responsibilities attaching to the position of general partner.

A person who lends his name as a partner, or who suffers his name to continue in the firm after he has actually ceased to be a partner thereof, is still responsible to third persons as a partner.

A partner may buy and sell partnership effects; make contracts in reference to the business of the firm; pay and receive money; draw and indorse, and accept bills and notes; and all acts of such a nature, even though they be upon his own private account, will bind the other partners, if connected with matters apparently having reference to the business of the firm, and transacted with other parties ignorant of the fact that such dealings are for the particular partner's private account. The representation or misrepresentation of any fact made in any partnership transaction by one partner, or the commission of any fraud in such transaction, will bind the entire firm, even though the other partners may have no connection with, or knowledge of the same.

If a partner sign his individual name to negotiable paper, all the partners are bound thereby, if such paper appear on its face to be on partnership account. If negotiable paper of a firm be given by one partner on his private account, and in the course of its circulation pass into the hands of a bona fide holder for value, without notice or knowledge of the fact attending its creation, the partnership is bound thereby.

One partner cannot bind the firm by deed, though he may by deed execute an ordinary release of a debt due the partnership.

If no time be fixed in articles of copartnership for the commencement thereof, it is presumed to commence from the date and execution of the articles. If no precise period is mentioned for continuance, a partner may withdraw at any time, and dissolve such partnership at his pleasure; and even if a definite period be agreed upon, a partner may, by giving notice, dissolve the partnership as to all capacity of the firm to bind him by contracts thereafter made. The withdrawing partner subjects himself, however, to a claim for damages by reason of his breach of the covenant.

The death of a partner dissolves the partnership, unless there be an express stipulation that, in such an event, the representatives of the deceased partner may continue the business in connection with the survivors for the benefit of the widow and children.

A partnership is dissolved by operation of law; by a voluntary and bona fide assignment by any partner of his interest therein; by the bankruptcy or death of any of the partners, or by a war between the countries of which the partners are subjects.

Immediately after a dissolution, notice of the same should be published in the papers and a special notice sent to every person who has had dealings with the firm. If these precautions be not taken, each partner will still continue liable for the acts of the others to all persons who have had no notice of such dissolution.

Don't enter into a partnership without carefully drawn articles, and don't sign the articles until the partnership funds are on deposit.

Don't enter a firm already established unless you are willing to become responsible for its debts.

Don't do anything out of the usual run of business without the consent of your partners.

Don't mix private matters with partnership affairs, and don't continue in a partnership where trust and confidence are lacking.

Don't continue a partnership after expiration of articles, and do not make any change without due public notice.

Don't dissolve a partnership without due public notice or without designating a member to settle all matters outstanding, - Don't forget that a partner may be called upon to make good partnership losses with his individual property, and that each partner may be held for the acts of the other parners as well as for his own.