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 the Act contains the general rule that mutual rights and duties of partners are to
be determined by their mutual agreement.

Section 9: Partners are bound to carry on the business of the firm to the greatest common advantage, to be just and faithful to each other and to render true accounts and full information of all things affecting the firm to any partner or his legal representative.

Section 11: i) Subject to the provisions of this Act, the mutual rights and duties of the partners of the firm may be determined by contract between the partners and such contract may be expressed or implied by a cause of dealing.
Such contract may be varied by the consent of all the partners and such consent may be
expressed or may be implied by a course of dealing.
ii) Agreement in restraint of trade – Notwithstanding, anything contained in Section 27 of ICA Such contract may provide that a partner shall not carry on any business other than that of
a firm while he is a partner.
According to Section 27, ICA agreement in restraint of trade is void but such an agreement
entered into between the partners is absolutely valid.

– Exceptions to Section 27, ICA are also contained in Section 36(2), Section 54 and Section
55(3) of IPA.

RIGHTS OF THE PARTNERS – Law Faculty

DUTIES OF THE PARTNER – Law Faculty

Section 17: Effect of change in the firm – Partnership Act – Law Faculty

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