TOPIC

: Indian Partnership Act 1932

FACULTY

: FYBMS B

SUBJECT

: Law

SEMESTER : SEMESTER -1.

GROUP MEMBERS

ABHISHEK (66) DEVARSHI (67) PERCEUS (68) KRUTIKA (69) ASHWIN (70)

INTRODUCTION
It is relationship between persons who share the profit of business . Partnership can be formed only with the intention to share profits of business. Basic requirements of contract like mutual consent, lawful object ; legally enforceable agreement apply to partnership contract also.

ESSENTIALS OF PARTNERSHIP
NUMBER OF PARTNERS

ORAL OR WRITTEN AGREEMENT

PARTNERS ARE MUTUAL AGENT

 SHARING OF PROFITS

BUSINESS

ESSENTIALS OF CONTRACT

PARTNERSHIP DEED
The partnership deed contains provisions relating to various matters such as:Name of firm. Nature and place of business. Name and address of all partners. Date of commencement of partnership. Duration of partnership. Profit sharing ratio. Amount of capital of each partner.

 Interest on capital. Interest on drawing. Aspects relating to salaries , commissions etc to be payable to partners. Rights and duties of partners among themselves. Interests on loans given by partners to the firm.

DUTIES OF A PARTNER
General Duties To be faithful and honest towards each other. Duty To Indemnity To repay for any loss caused due to fraud by him/her. Duty To Attend To attend to his duties and use his knowledge and skill for the advantage of all partners. Duty of Liability The partner is liable to the firm regarding the private the private profits earned by him. Duty Not To Carry On Business In Competition With Firm Profit earned through that personal business has to be paid to the firm. Duty To Preserve Rights And Interests If such transfer is needed to be done, it is to be done with the consent of the existing partners.

RIGHTS OF PARTNERS
To take part in the business. To access the books of the firm. To share profits. To interest on capital. To an out-going partner can carry on a competing business. To be consulted in day to day business activities. To indemnity for expenses occurred. To retire.

MINORS POSITION IN A PARTNERSHIP

A minor is a person below 18 years of age. The position of the minor can be studied under 2 headings namely :Rights And Liabilities Of A Minor During Minority RIGHTS To share profits. To access books of accounts. To sue for share of profit of property of the firm

LIABILITIES Only for the acts of the firm. Therefore, the liability is limited.

Rights and Liabilities of a minor on attaining the age of majority .

1. Where the minor continues as a partner.

2. Where the minor decides not to continue as partner.

1) Where the minor continues as a partner .

His Rights and liabilities shall be similar. His share in profit & property will be same. Unless there is an agreement to the contrary. He becomes personally liable for all the debts.

2)Where the minor decides not to continue as a partner.

His rights and liabilities continue to be those of a minor up to the date of public notice. His share shall not be liable for any acts of the firm, done after the date of public notice. He can file a suit against the partners for his share of property and profits.

U/s 39 Dissolution of firm

Modes of Dissolution:A Voluntary Dissolution B- Dissolution by Operation of law C- Dissolution by the intervention of the court

A ) Voluntary Dissolution By consent By agreement/contract By giving notice B ) Dissolution by operation of law 1 ) Compulsory dissolution By insolvency Some event making partnership business unlawful. Some event making business unlawful if carried on in partnership ( 21 partners in a firm )

2 )Dissolution on happening of certain contingences On completion of venture On the Death of a partner On insolvency C ) Dissolution of firm by intervention of court. Insanity of a partner Misconduct of a partner Willful or persistent breach of agreement Transfer of interest to third party Losses in business Any other just and equitable grounds.

CONSEQUENCES OF DISSOLUTION
1] RIGHT OF PARTNERS :

Right to have the business wound up: It means discharging of liabilities ,surplus if any should be distributed amongst the partners.

Right

to payment of premium on premature dissolution

Where a partner has joined a firm which was in existence for a fixed term and has paid a premium is entitled to reimbursement of the amount either wholly or partly as defined in agreement.

Right of partner in case of dissolution on account fraud or misrepresentation:

Where the firm has dissolved on account of the fraud or misrepresentation by a partner the innocent partner can cancel the contract of partnership and also have the right to retain the surplus if any for the capital paid.

Right to restrain partners from the use of firm name or firm property.

2 ] LIABILITIES OF A PARTNER ON DISSOLUTION OF THE FIRM: Liability for acts done after dissolution until the public notice is given:
Partners are liable for acts of winding up as well as for transaction began but remained unfinished at the time of dissolution.

Liability to account for personal profit:

If firm is dissolved on account of death of a partner and before the affair wound up the surviving partner continue to carry on the business ,any profit made in such case needs to be accounted for.