Partnership Act 1932

Week 8
Business Law
 Partnership [Section 4]
“Partnership is the relation between
persons who have agreed to share
the profits of a business carried on
by all or any of them acting for all”.
Firm and partners [Section 4]
“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
 Act of firm [Section 2(a)]
“An act of firm means any act or
omission by all the partners, or by
any partner or agent of the firm
which gives rise to a right
enforceable by or against the firm.”
 Third party [Section 2(d)]
“Third party used in relation to firm
or to a partner therein means any
person who is not a partner in the
firm.”
 Essential elements of a
partnership [Section 6]
Agreement
Sharing Profit and Loss
Liabilities
Payment of tax
Mutual Co-operation
Capital
Entry of a new partner
Dissolution of Partnership
Registration
 Advantages of Partnership
Effective Decisions
Availability of Capital
Division of work
Division of labor
Use of Machines
Large scale production
Easy to form
Easy to dissolve
 Disadvantages of
Partnership
Delay in Decision
Personal Disputes
Difficulties
Uncertain Business
Difficult to withdrawl
 Partnership Deed
 Name of Business
 Nature of Business
 Location of Business
 Duration of Business
 Rights and Duties of partners
 Capital
 Ways of dissolution of partnership
 Date of Partners’ joining in business with
names
 Liabilities, loan or interest
 Kinds of Partnerships
Partnership at will
Partnership for fixed period
Particular partnership
 Types of Partners
 Working/Active/Managing Partners
 Sleeping/Dormant Partner
 Nominal Partner
 Partner in Profit only
 Silent Partner
 Secret Partner
 Sub-Partner
 Partner by estoppel or holding out
 Advantages of Registered
Firm
Settlement of dispute
Protection of rights
Protection of new partners
Public onfidence
Loan facility
Government facilities
Suit by partner against partner
Suit by partner against firm
Suit by firm 3rd party
Disadvantages of Registered
Firm
Disability to firm
Disability to partner
Rights of others against disability of
firm
Lack pf Public confidence
Lack of Capital
 Dissolution of Firm
By Agreement
By Contingency
Compulsory Dissolution
By expire of time duration
By completion of venture
Notice of dissolution
By order of court