Which of the following is not always an essential feature of partnership?

According to the Indian Partnership Act, 1932, a partnership has certain essential features that must always be present. Let's examine each option:

Sharing of profits and losses - This is a fundamental requirement. There must be an agreement to share profits (and losses, unless specifically excluded by agreement). Without this element, there is no partnership.

Relationship of mutual agency - This is essential. Each partner acts as both a principal and an agent. Every partner can bind the firm and other partners by their acts done in the ordinary course of business. This is a defining characteristic that cannot be excluded.

Agreement to carry lawful business - This is mandatory. The business must be legal and lawful. Any agreement to carry on illegal activities cannot create a valid partnership.

Liability of partners is always unlimited - This is NOT always true. While in a traditional partnership firm, partners have unlimited liability (meaning they are personally liable for the firm's debts), there are exceptions:

• In a Limited Liability Partnership (LLP), partners have limited liability
• Partners can have their liability limited to their capital contribution in specific partnership structures

Since unlimited liability is not a universal feature of all forms of partnerships, this is the correct answer. The law recognizes partnerships where liability can be limited, making this feature not essential in all cases.