What happens when there is a change in the partnership agreement of a partnership firm?

A new agreement is formed, but the firm continues to operate

A partnership is a contractual arrangement where two or more individuals, known as partners, come together to jointly share the profits of a business. All partners have the authority to act on behalf of the partnership. Whenever there is a modification in the current agreement, it leads to the reconstitution of the partnership firm. As a consequence, the existing agreement terminates, giving rise to a new agreement that reflects altered relationships among the partners or changes in the composition of the partnership firm.