Partnership Act 1932. Partnership Contract : ‘concurrent subject’( in Entry 7 of List III (Seventh Schedule to Constitution). Indian Partnership Act is a Central Act, special types of Contract Unlimited liability is the major disadvantage Partnership Firm is not a legal entity.
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Partnership Act 1932
Partnership Contract :
‘concurrent subject’( in Entry 7 of List III (Seventh Schedule to Constitution). Indian Partnership Act is a Central Act,
special types of Contract
Unlimited liability is the major disadvantage
Partnership Firm is not a legal entity
The No. of partners in a firm shall not exceed 20
The following can enter into a partnership
MUTUAL AGENCY IS THE REAL TEST - The real test of ‘partnership firm’ is ‘mutual agency’, i.e. whether a partner can bind the firm by his act, i.e. whether he can act as agent of all other partners.
Persons who have entered into partnership with one another are called individually “partners” and collectively “a firm”, and the name under which their business is carried on is called the “firm name
Partnership Firm is not a legal
Kinds of Partners
No agreement but the person holds out, represents himself to be a partner, becomes responsible to O/s as partner. It is not necessary that representation must be made directly to the person so giving credit.
A partnership deed should contain the following clause
A. Absolute Duties
B. Qualified duties
The implied authority of a partner does not empower him to
Change in partners via death, retirement, admission of new member, expulsion, insolvency, transfer of interest by partner etc. This changes, the rights and liabilities of each partner. This is termed as reconstitution of a firm.
:If constituted for a fixed term, by the expiry of that term
:If constituted to carry out one or more adventures or undertakings, by its completion.
: By the death of a partner
:On insolvency of a partner