OUTGOING PARTNERS Section 32-38 – A partner may cease to be a partner in following ways: By retirement By expulsion By insolvency By death 1. Retirement of a PartnerRetirement means voluntary withdrawal. According to the Section 32(1), a partner may…
INCOMING PARTNERS Section 31: Subject to contract between the partners and to the provision of Section 30, no person shall be introduced as a partner into a firm without the consent of all the existing partners. Subject to provisions of…
The kind of acts for which partners are liable a) Acts done within the authority of a partner which may be either express or implied ‘Authority’ means the capacity to bind the other by one’s act. Here, it is the…
Effect of notice to an acting partner (Section 24) Section 24: Notice to a partner who habitually acts in the business of the firm of anymatters relating to affairs of the firm operates as notice to the firm, except in…
Liability for torts and wrongful acts – Section 26 Section 26: Where by the wrongful act or omission of a partner acting in the ordinary courseof the business of the firm, or with the authority of is partner’s loss or…
POSITION OF A MINOR ADMITTED TO THE BENEFITS OF PARTNERSHIP – SECTION 30 Partnership arises from contract and not from status (Section 5). And therefore all the persons should be competent to contract. A minor being incompetent to contract, his…
RIGHTS OF TRANSFEREE OF PARTNERS’ INTEREST: SECTION 29 Section 29(1) deal with the position during the continuance of the firm, where as the positionon dissolution of the firm of contained in Section 29(2).– During the continuance of the firm, the…
THE DOCTRINE OF HOLDING OUT – SECTION 28 The doctrine of holding out is a branch of law of Estoppel. According to law of estoppel, if a person by his representation induces another to do some acts which he would…
Liability for misapplication of money or property by a partner – Section 27 In this Section, two kinds of cases of misapplication of money or property have been mentioned: a) When money or property have been received by a partner…
RELATIONS OF PARTNERS TO THIRD PARTIES The relation between partners on one hand and third parties on the other is founded on principal of mutual agency as contained in Section 18 which reads as under:“Subject to the provision of this…