By:- Group 3
Saad Hasan Niazi
Riaz Ahmed Khamboo
Partnership Act 1932
Partnership is the relation between persons who
have agreed to share the profits of a business carried
on by all or any one of them acting for all
Partnership Act 1932
Essentials element of partnership
Kinds of partners
Types of partnership
Rights of partner
Duties of partner
Partnership Deed :
Partnership Deed is the document that defines the
rights and obligations of partners. Besides names,
address and occupation of partners it lays down the
duration of partnership, nature of business, profit
sharing ratio, right to interest, salary, commission
Essential elements of
Association of two or more persons;
Existence of a contract;
Carrying on a business;
Sharing of profits;
Prevalence of mutual agency.
Kinds Of Partners
There may be different kinds of partners in a partnership firm.
The important classification of partners is given below:
Partner in profits only,
Types Of Partnership
Partnership at will- (Sec. 7)where time is not mentioned in
Particular partnership - (Sec. 8)partner in a specific venture
Limited partnership- (Sec. 7) partner may be with limited
Rights Of Partners
Section 12 & 13 of the partnership act
Rights to take part in management
Every partner has a right to take part in the conduct of the business.
Rights to inspect books
Every partner has a right to check the books of account of the firm
and to get the copies.
Rights to be consulted
Every partner has a right to be consulted and heard before any matter
Rights to share profit
Every partner has a right to share equally in the profits earned by the
firm, irrespective of his amount of capital contribution.
Rights to interest on capital
A partner is not entitled to receive interest on capital contributed by him..
Right to use property
Every partner of the firm is co-owner in the property of firm and he has a right
to use it for the best benefit of the business of the allowed.
Rights to admit and expel partner
A new partner cannot be admitted in the firm and an old partner cannot be
expelled from the firm without the prior consent of all the partners.
Right to give opinion
Nature of the partnership business cannot be altered without the prior approval
of all the partners.
Right to collect debts
A partner has an implied right to collect partnership debts and to give
receipts for payments.
Right to act as agent
Every partner can act as an agent on behalf of the remaining partners
and bind the other partners to his act.
Rights of retirement
Every partner has a right of retirement from the firm with the mutual
consent of all other partners. But when the partnership is at will, he
can leave the firm at any time while giving a due notice of his
retirement from the firm.
Right of competing business
Any outgoing partner has a right to start a business competing with that
of the firm but he cannot use the name of the firm.
Duties Of Partners:
To work for common advantage
To be faithful
Render true account
To indemnify for fraud
Not to claim remuneration
To share profits and losses
To act within authorities given