Legal Definitions - trading partnership

A trading partnership is a type of partnership where the primary business involves buying and selling goods or services. It is a voluntary association of two or more people who jointly own and operate a business for profit. Under the Uniform Partnership Act, a partnership is presumed to exist if the persons agree to share proportionally the business's profits or losses.

For example, two friends decide to start a clothing store together. They agree to share the profits and losses equally. This is a trading partnership because their business involves buying and selling clothes.

Another example is a partnership between two farmers who grow and sell crops together. This is also a trading partnership because their business involves buying and selling agricultural products.

Trading partnerships are different from other types of partnerships, such as family partnerships or limited partnerships, because their primary focus is on buying and selling goods or services.