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…
Section 17: Effect of change in the firm Sometimes, after certain rights & duties of partners are in existence certain changes might occur in the firm. This section contemplates three kinds of changes in a partnership firm:a) Change in constitution…
DUTIES OF THE PARTNER 1. Duty to carry on the business to the greatest common advantageRead with Section 16(a) – If a partner derives any profit for himself from any transaction of the firm, or from the use of property…
RIGHTS OF THE PARTNERS Various rights and duties contained in Sections 12 to 17 are “subject to contract between partners”: 1. Section 12(a) – Right to take part in conduct of business. 2. Section 12(c) – Right to express opinionAny…
RELATIONS OF THE PARTNERS INTER SE Two fundamental principles govern relations of partners to one another:I. The principle of Absolute Good Faith. (Section 9)II. The principle that mutual rights and duties can be determined by Voluntary Agreement.(Section 11)Section 11 of…
DISTINCTION BETWEEN PARTNERSHIP FIRM AND HINDU JOINT FAMILY: Broadly, a partnership firm is a mode of carrying on of the business, whereas the Hindu JointFamily is a kind of social system. The difference between the two can be seen from…