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Law of Partnership


Types of Partnership
Test of Partnership

Uzair A.K. Ghouri

Ghouri . property.Law of Partnership 1932 • Definition (u/s: 4) – Voluntary association of two or more persons who contribute money.K. Uzair A. time and skills to carry on business for profit and share losses.

K. Ghouri .• • • • • • • • • • Characteristics of Partnership Legal Entity Agreement Number of Partners Existence of Business Sharing of Profit Unlimited Liability Capital Management Transfer of Interest Control Uzair A.

Types of Partnership Types of Partnership contain three types which are as follows: 1. Partnership-at-will Particular Partnership Limited Partnership Uzair A.K. 3. 2. Ghouri .

4. The agreement must be for doing some business. 3.K.Test of Partnership In order to determine the existence of partnership. Uzair A. the following must be proved: 1. 5. There must be an agreement among the persons to be held as partners. There must be an agreement to carry on the business by all or any of them acting for all. The agreement must be to share profit of business. There must be a relationship of principal and agent among the partners. Ghouri . 2.

Registration of Firm (not essence) 2. 1. No separate legal entity Uzair A.Firm Definition: The persons who have entered into a partnership with one another are Collectively called a Firm. Ghouri .K. Existence of Firm 3.

2. 3. Name Place Object Address of the Partners Duration (if any) Registrar if satisfied will registered the Firm. Ghouri . Application must contain: 1.Procedure of Registration (not compulsory) • Application is submitted with initials of all partners.K. 5. Uzair A. 4.

4.K. 2. Effects will occurs on dissolution on registered firm and non-registered firm. 1.Dissolution of Firm When relationship between all partners come to an end. Ghouri . 3. Suit by Partner Suit by Firm Suit by Firm against Partner Suit by Third Party No Claim for Adjustment Uzair A. 5.

but the dissolution of partnership may or may not include the dissolution of the firm.) Uzair A.Dissolution of Partnership • Dissolution of Partnership is different from dissolution of a Firm. Ghouri . it is said to be dissolution of Partnership (dissolution of firm includes the dissolution of partnership.K. retires or becomes insolvent but the remaining partners continue the business. When one Partner dies.