Legal Definition of Limited partnership:  A financial agreement under which a contributor to a partnership is liable, if the company should fail, only for the sum of money he invested. (Other partners in the same enterprise, however, may not be limited partners but are general partners and have much greater obligations and liabilities.) | Unlock the potential of your business with limited partnerships. Learn how this crucial financial agreement can attract investors, minimize liabilities, and open doors to new opportunities. Click here to understand the benefits of limited partnerships for business owners and investors