PRESENTATION OF BUSINESS LAW OF UNIVERSITY OF CENTRAL PUNJAB BBA-5

2.  According to sec. 4 of the Indian Partnership
Act, 1october1932 .
“A partnership is the relationship existing
between two or more persons who join to
carry on a trade or business. Each person
contributes money, property, labor or skill,
and expects to share in the profits and losses
of the business.”

3.  Under sub section (3) may be given by the
retired partner or by any partner of the
reconstituted firm.
 “Reconstitution of a partnership firm means a
change in the nature of relationship among
members, effected through a fresh
agreement under which the existing business
continues.”

4.  According to the Partnership Act 1932.
 Section 23.
 Inclusion of a new person as partner to an
existing firm is called admission of a partner.
The new partner who joins the business is called
admission of a partner or income partner.
 For example:
 A, B, C and D were partners in a firm with capitals
of respectively and sharing profits and losses
25%. They decide add a new partner E. So, they
share 20% sharing profits and losses.

5.  A partner may retire with the consent of all
the other partners, in accordance with an
express agreement by the partners, or where
the partnership is at will, by giving notice in
writing to all the other partners of his
intention to retire.

6.  Sub-sections (2), (3) and (4) of Sec. 32.
 A partner may not be expelled from a firm by
any majority of the partners, save in exercise
in good faith of powers conferred by contract
between partners.
 For example:
 A is not follow the business rules.

7.  Where a partner of a firm is insolvent by a
court.
 When a partner declare insolvent it is not
necessary the firm is dissolved.

8.  Where under a contract between the partners
the firm is not dissolved by the death of a
partner, the estate of a deceased partner is
not liable for any act of the firm done after
his death.