Joint and Several liabilities:
Every partner is jointly and severally liable for all acts of the firm. It means that in case the assets are inadequate for meeting the claims of creditors, even their personal properties should be made available. The creditors can recover their claims from all the partners.

Though a partnership agreement need not necessarily be in writing, it is important to have a written agreement in order to avoid misunderstandings; it is desirable to have a written agreement. A carefully drafted partnership deed helps in ironing out differences which may develop among partners and in ensuring smooth running of the partnership business. It should be properly stamped and registered.

According to Prof.Haney, "The relations which exist between persons, competent to make contracts, who agree to carry on a lawful business in common with a view to private gain".
According to Spiegel, "Partnership has two or more members each of whom is responsible for the obligatory requirements of the partnership. Each of the partners may bind the others and the assets of the partners may be taken for debts of partnership".

Liability:
Except the Karta, the liability of all other members is limited to their shares in the business. The Karta is not only liable to the extent of his share in the business but his separate property is equally attachable and amount of debt can be recovered from his personal property.

1. The Joint Hindu Family Business is a distinct form of organisation peculiar to India.
2. Joint Hindu Family Firm is created by the operation of law.
3. It does not have any separate and distinct legal entity from that of its members.
4. The business of Joint Hindu Family is controlled under the Hindu Law instead of Partnership Act.
5. The membership in this form of business organisation can be acquired only by birth.
6. The head of the Joint Hindu Family business is known as 'KARTA'.