Return of premium on premature dissolution (Section 51) – If a person pays a premium to become a partner for a certain specified period, but partnership ends before the expiry of that term, he is entitled to refund of premium.…
Liability of acts done after dissolution Section 45(1) states that notwithstanding the dissolution of the firm, the partners continues to be liable as such to third parties for any act done by any of them which would have been the…
Dissolution by Court (Section 44) Section 44 which permits a partner to invoke the jurisdiction of the court to dissolve a firm is not subject to contract between the partners. But, if there is a term in contract that the…
DISSOLUTION OF A FIRM Section 39 of Indian Partnership Act, defines ‘Dissolution of Firm’ as “the dissolution of partnership between all the partners of a firm is called ‘dissolution of firm’.” This is used to denote that there is a…
Revocation of continuing guarantee – Section 38 In any contract of guarantee, it is necessary that subsequent to making of a contract the term should not be varied. Any variance in terms without surety’s consent discharges the surety from liability…
RIGHTS OF OUTGOING PARTNERS Right to carry on competing business Right to share subsequent profits until the amount due to him has been paid 1. Right to carry on competing businessSection 36(1): An outgoing partner has a right to carry…
Insolvency of a partner Section 34(1): An insolvent is not allowed to continue as a partner and therefore a person who is adjudicated insolvent ceases to be a partner on the date on which order of adjudication is made whether…
Expulsion of a partner Section 33 provides that “a partner may not be expelled from a firm by any majority of the partners, save in the exercise in good faith of powers conferred by contract between the partners”.Thus, two conditions…
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…