2. General Principles
• Meaning:
• Essentials/Tests of Partnership:
• Association of two or more persons
• Agreement between all parties concerned
• Sharing of Profits of a business
• Mutual Agency
3. Registration of Partnership Firm
• Registrar of firms:
• Procedure:
• Need of Registration:
• Consequences of Non registration:
• Time for Registration:
• Intimation to registrar regarding changes
subsequent to registration:
• Register of firms-A public Document:
• Register of Firm a conclusive Evidence(sec 68):
• Penalty for furnishing false particulars(sec 70):
4. Formation of Partnership
• Partnership Deed:
• Contents of Partnership Deed:
• Competence of Person to become a partner:
6. Kinds/Classes of partners
• Actual/Active Partner:
• Dormant/Sleeping Partner:
• Nominal Partner:
• Partner in Profits Only:
• Sub Partner:
• Partner by estoppels or holding out:
7. Rights of Partners
• Right to take part in Management:
• Right to be consulted:
• Right to have access to books:
• Right to share profits:
• Interest on capital:
• Interest on Advance:
• Right to to be Indeminified:
• Right to use of partnership Property:
• Powers in Emergency:
8. Rights of Partners cont…
• No new partner to be introduced:
• No liability before joining:
• Right to Retire:
• Right not to be expelled:
• Right to carry on competing business:
• Right to share subsequent profits after
retirement:
9. Duties of Partners
• To observe good Faith:
• To attend to his duties diligently:
• To indemnify for fraud:
• To indemnify for willful neglect:
• To share losses:
• To hold & use property of firm:
• To account for private profits:
• To account for profits of a competing business
• To act within authority:
• Not to assign his rights:
• To be liable jointly & severally:
10. Implied Authority & Third Parties
1. Liability for wrongful act of a partner:
2. Liability of firm for misapplication by
partners:
3. Liability of firm for information obtained by a
partner:
4. Liability of firm for any admission by partner:
11. Dissolution of Partnership Firms
1.Dissolution of partnership:
2. Dissolution of Firm:
• Modes of dissolution of firm:
1. Dissolution without intervention of court:
a. Dissolution by agreement:
b. Compulsory Dissolution:
c. Dissolution on happening of certain
contingencies:
d. Dissolution by notice:
12. • Dissolution By court:
a. Insanity
b. Permanent incapacity:
c. Misconduct:
d. Breach of Agreement:
e. Transfer of interest:
f. Loss in Business:
g. Just & Equitable:
13. Consequences of Dissolution
1.Right to an equitable lien:
2.Right to return of Premium:
3.Right where partnership contract is rescinded for
fraud:
4.Right to restrain use of firm’s name or property:
