1. Meaning of Fixed-Term Partnership

• A fixed-term partnership is formed for a specific duration
  
• The term is decided by all partners at the time of the agreement
  
• The firm is expected to operate until the completion of that term
  
• The partnership automatically dissolves after the fixed period ends
  
• It is also referred to as a partnership for a definite period
  

2. Features of a Fixed-Term Partnership

• Duration is clearly mentioned in the partnership deed
  
• All partners agree to continue until the end of the fixed term
  
• It cannot be dissolved before expiry without mutual consent
  
• Upon completion, the firm may be renewed or dissolved
  
• The term can be based on time, task, or event completion
  

3. Legal Status and Validity

• It is legally recognized under the Indian Partnership Act, 1932
  
• The fixed term must be documented to be enforceable
  
• The partnership functions like any regular firm during the term
  
• If partners continue business after expiry, it becomes a partnership at will
  
• Proper record-keeping and communication are essential for compliance
  

4. Rights and Obligations of Partners

• Rights and duties remain the same as in other partnerships
  
• Partners are bound to fulfill obligations during the fixed period
  
• Early withdrawal may require consent from all partners
  
• Losses and profits are shared as per the agreed ratio
  
• Any changes require amending the original agreement
  

5. Dissolution and Renewal Process

• The firm dissolves automatically at the end of the agreed term
  
• No separate notice is required unless partners continue the business
  
• Partners may choose to renew the term by mutual agreement
  
• A new deed or extension agreement should be prepared if continued
  
• The Registrar of Firms must be notified if the firm is registered