What is defined as a contract where two or more persons bind themselves to contribute to a common fund with the intention of dividing profits?

A partnership is defined as a contract where two or more persons bind themselves to contribute to a common fund with the intention of dividing profits. This definition captures the essence of a partnership by highlighting the collaborative nature of the relationship between partners. Each partner contributes resources—whether money, property, labor, or skills—with the shared goal of generating profits that are then distributed among them according to their agreement.

The concept of a "common fund" underscores the collective investment made by the partners, which is a fundamental characteristic that distinguishes partnerships from other business entities. Additionally, the intention to divide profits reinforces the idea that partnerships are profit-oriented ventures, emphasizing the mutual benefit that partners expect from their collaboration.

In contrast, other options like a voluntary association, corporation, or sole proprietorship do not possess the same characteristics. A voluntary association may exist for various purposes and not solely for profit division, while a corporation is a distinct legal entity separate from its owners, and a sole proprietorship involves only one individual who retains all profits without a partnership structure. Therefore, the correct answer aligns perfectly with the definitional framework of partnership law.