Explain the essential elements of a partnership and the law of partnership applicable in Sri Lanka.

1. 1 · Define. The relation which subsists between persons carrying on a business in common with a view of profit (Partnership Act 1890).
2. 2 · Essential elements.
   • Agreement; two or more persons; a business.
   • Carried on in common: mutual agency.
   • View of profit: profit sharing is evidence, not proof.
3. 3 · Law in Sri Lanka. No local Partnership Act; English law through the Civil Law Ordinance.
4. 4 · Formalities. Prevention of Frauds Ordinance writing rule; business name registration; partnership deed; tax and EPF/ETF registration.
5. 5 · Types of partners in brief. Active, sleeping, nominal, by estoppel, incoming, retiring.
6. 6 · In Sri Lankan business. A hardware shop in Kurunegala run by two friends; each is personally liable for all debts.
7. 7 · Close in one line. Unlike a company, a firm is not a separate legal person, so partners bear unlimited liability.

Scoring tip: Write the 1890 definition exactly, then build one heading on each of its key words.