Persons who have entered into partnership with one another are called individually "partners" and collectively "a firm", and the name under which their business is carried on is called the "firm name".

Partnership not created by status Partnership not created by status.--The relation of partnership arises from contract and not from status, and, in particular, the members of Hindu undivided family carrying on a family business as such, or a Buddhist husband and wife carrying on business as such are not partners in such business.