A partner or partners may retire from the firm due to the various reasons like old age, better opportunity, ill health, conflict between the partners and so on. A partner may retire with the consent of all the partners or in accordance with the agreement between them. Retirement of a partner results in a reconstitution of a partnership firm. The business of the firm continues even if a partner retires. Due to retirement, the existing partnership comes to an end and the remaining partners form a new agreement and the partnership firm is reconstituted with the new terms and conditions. The retiring partner continues to be liable to the third parties unless he discharges himself by notation i.e. until a public notice of his retirement is given.
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