Term Paper on

Partnership Case

Prepared By
Team C
1. Jarin Tasnim
 ID-2022-2-95-044
2. Sumaiya Binte Anwar
 2022-2-95-004
3. Nafiza Anzum Saima
 2022-2-95-013
4. Tasnoba Binte Ashraf
 ID: 2022-2-95-022
Date: 01/09/2022
Answer to the question no 1
Ayesha has her owned beauty store named Ayesha beauty store. She alone operates
the store but because of some financial problem she offered her friends for help. So
that on march 1 Bilkis as a sleeping partner lent 2million to the store and agreed to
be paid 30% of the monthly profits until the loan and agreed upon interest were
fully repaid. And Bashir as an active partner he takes part in the business and
inspect the book of the business and own the property of the business and wrote a
check for BDT 3.5million to Ayesha’s Beauty store and agreed to pay 25%of the
profits in return for her contribution. They have no legal agreement and they
divided the profits as they had agreed. Ayesha used the money to purchase
equipment, supplies and a delivery truck and Bashir working at the store and help
Ayesha for business policies. On july1, Bashir wrote a letter to her daughter saying
that he was assigning his interest to her. In a letter to her daughter Dora dated July
1st, Bashir explained that she was giving Dora full ownership of the Ayesha's
Beauty store.Ayesha paid Bashir, Bilks, and herself profit on August 1. On
September 1, Dora demanded payment of the earnings and access to the business
book from Ayesha. On October 1, Ayesha hit and critically hurt pedestrian Faisal
while operating the delivery vehicle for the store. The truck was not covered by
Ayesha's Beauty Store, and the company lacked liability insurance. Faisal demand
cash for his treatment and recovering compensation. Now they want to close the
business and Bilkis, Bashir and Dora are claiming their share. Faisal hold Ayesha
alone responsible for his injured and compensation.

The issues of the case one should consider that one should consider before giving
any decision:
 The partners had no written agreement.
 Bashir assigning his interest to his daughter without knowing other partners.
 Faisal holds Ayesha alone responsible for his injured and compensation but
the delivery truck belongs Ayesha’s beauty store.
 Bilkis, Bashir and Dora are claiming there share in the property but
according to law business close accordance with a contract between them.
Answer to the question no 2
Law Applicable to the Case
In this given case the agreement of partnership in not written. But it is in the
interest as partners as well as for practical purpose, the agreement must be in
writing.
A partner; Bashir has transfer his profit interest in the firm to his daughter, Dora
but did not inform any other partners. According to Transfer of a partner’s share,
partnership Act, section.29, Transfer of a partner’s share require reconstitution
of firm. However the transferee (Dora) does not entitle to-
 To interfere in the conduct of the business of the firm,
 To require account of the firm,
 To inspect the books of the firm.
On transfer of interest by a partner (Bashir), the transferee (Dora) only becomes
entitled to receive the share of profit of the transferring partner.
According to Rights and duties of partners after a change in the constitution of
the firm, partnership Act, section 17(a): Subject to contract between the
partners, where a change occurs in the constitution of a firm, the mutual rights
and duties of the partners in the reconstituted firm remain the same as they were
immediately before the change.
While at work, Ayesha injured a third party named Faisal while driving the store
delivery truck. Faisal holds Ayesha alone responsible for his injury and
compensation. According to liability of the firm of wrongful acts of a partner;
Partnership Act, section 27: where, by the wrongful act or omission of a partner
or with the authority of his partners, loss or injury is caused to any third party, the
firm is liable therefore to the same extent as the partner.
According to Dissolution agreement, Partnership Act, section 40: a firm maybe
dissolved with the consent of all the partners, or in accordance with a contract
between them. In the given case there was no contract of dissolution between
the partners. So the dissolution of the firm can be done if the entire partner gives
the consent to do so.
According to settlement of accounts between partners, Partnership Act, section
48: The losses of the firm, including any sums contributed by the partners, shall
be applied in the following manner:
 In paying the debts of the firm to third parties,
 In paying to each partner rateably what is due to him from firm for
advances as distinguished from capital,
 In paying to each partner what is due to him on account of capital,
 The residue, if any, shall be divided among the partners in the proportions
in which they were entitled to share profits.
According to partnership Act, section 29: In case of dissolution of partnership
firm, the transferee only entitle to receive the transferring partner’s share in the
assets of the firm, if the transferring partner ceases to be a partner otherwise not.
Answer to the question no 3
In this case the key findings we found that will have major priority those are
 Bashir has transferred his profit interest in the firm to his daughter,
Dora without informing his partner as Transfer of a partner’s share,
partnership Act, section.29, transfer of interest by a partner (Bashir),
the transferee (Dora) only becomes entitled to receive the share of
profit of the transferring partner. The transferee has to accept the
share profit agreed to by the partners (sec:29-1) as they want to
close their business the transferee ( Dora) is entitled to receive the
transferring partner’s share in the firm assets. (sec:29-2) Bashir will
not get the profit share as he already gives dora an written
statement.
 So Dora will also have share in firm’s assets.
 While at work, Ayesha injured a third party named Faisal while
driving the store delivery truck. Faisal holds Ayesha alone responsible
for his injury and compensation. According to liability of the firm of
wrongful acts of a partner; Partnership Act, section 27 the firm is
liable therefore to the same extent as the partner. So not only
Ayesha is liable for paying compensation other partners I also liable
for this. They have to pay the expense from the firm account.
  Though Ayesha purchase the property but she buy those assets for
their business. According to Property of the firm(sec:14) all property
acquired for purpose and in the course of business of the firm and all
fights and interest in any property so acquired and goodwill of the
business of the firm. So all the partner will get property share
equally.
 As Dora is Transferee of Bashir here Dora will have the share of
property according the Transfer of a partner’s share, partnership
Act, section.29

Decisions Based on Findings and Conclude:

Decisions:
 Ayesha is liable to other members for the share. Because they had a
partnership according to the partnership act (section 4) they have agreed to
share the profits of the business by 30% and 25%
 Ayesha has to compensate faisal as he held Ayesha for the responsible for
his injury as well as firm. Because Faisal holds Ayesha alone responsible for
his injury so Aysha has to compensate him by herself.
 Bilkis and basir are partners so that Ayesha has to share property with them
according to section 14 in the absence of written agreement. And Dora is a
sub partner to bashir so she cannot claim her share from Ayesha but Dora
can get her share of property from bashir's share.