=29.= Legal authorities define a partnership as a combination by two or more persons, of capital, labor, or skill, for the transaction of business for their common profit. Partnerships may be formed for the purpose of conducting any legitimate business or undertaking, and are created by contract, expressed or implied, between the parties. Partnership agreements need not be in writing, but may be made by oral assent of the parties. Even though they are legal if made orally, partnership agreements should always be made in writing. =30. Partnership Agreements.= These should state the date on which the agreement is entered into, the name of the contracting parties, the name by which the partnership is to be known, and the address of the place of business. Following should be a statement of the nature of the business, the amount and form of investment of each partner, the duration of the partnership, the basis of division of profits, provisions for the dissolution of the partnership, definition of the duties of active partners, and a provision for the division of the assets in the event of dissolution or at the termination of the partnership. =31. Kinds of Partners.= Partners are of different kinds, depending on the nature of the partnership agreement and the extent of their liability, expressed or implied, as between themselves or in respect to third persons. The usual classification of partners is as follows: _ostensible_, _secret_, _nominal_, _silent_, and _dormant_. Ostensible partners are those whose names are disclosed to the public as actual partners. Secret partners are those whose names are not disclosed to the public, though participating in the profits. Nominal partners are those who allow their names to be used as partners, though they may have no actual interest in the business. The fact of their being known as partners makes them liable to third parties. Silent partners are those who, while sharing in the profits, take no active part in the management of the business. Their names may or may not be known. Silent partners may also be secret partners, Dormant partners are those, who are both silent and secret partners. They are usually included in a general term like _Company_, _Sons_, or _Brothers_. =32. Participation in Profits.= The most simple partnership from an accounting standpoint is one in which the investments of the several partners are equal, and profits are to be divided equally.