THE INDIAN PARTNERSHIP ACT' 1932 Section. 4 of the Indian Partnership Act, 1932 defines Partnership in the following terms: œ Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. The partnership Act does not lay down any maximum number of partners. But according to section 464, Rule 10 of Companies miscellaneous Rules,2014, the maximum number of partners is 100. According to section 11 of the Companies Act, 1956 a partnership for a banking business must not have more than 10 partners and for other businesses, it must not exceed 20. Therefore, The maximum limit of partners in a firm has been specified by the Indian companies act 1956. The Indian contract act 1872: The Indian Contract Act, 1872 prescribes the law relating to contracts in India and is the key act regulating Indian contract law. The Act is based on the principles of English Common Law. It is applicable to all the states of India. The Indian companies act 1956: Indian Companies Act 1956 was an Act of the Parliament of India, enacted in 1956, which enabled companies to be formed by registration, sets out the responsibilities of companies, their executive director, and secretaries, and also provides for the procedures for its winding.