The document outlines the rights and liabilities of partners in a firm, emphasizing that these can be determined by express or implied contracts. It details the authority of partners, duties towards each other, and the implications of a partner's actions on the firm’s responsibilities, including shared profits and losses. Additionally, it discusses the rules surrounding partnership changes due to retirement, insolvency, or the introduction of new partners, and addresses the potential liabilities of partners who represent themselves as such even when not officially one.

1. Sedulous

2. Rights and Liabilities of Parties

3. Relations of parties to one another
Determination of rights and duties of parties by contract between
the parties: The mutual rights and duties of the partners of a firm
may be determine by contract between the parties. Such contracts
may be expressed or may be implied from the course of dealing of
the firm.
The partnership act lays down two general rules:
 General duties of partners
 Indemnity
Sedulous

4. Relations of parties to one another
Rights to take part in business.
Every partner shall have the
right to express his opinion.
Sedulous
Bound to attend diligently to
his duties.
Right to have access.

5. Relations of parties to one another
Sedulous
Not entitle to receive remuneration.
Entitle to share profit and less equally
Interest to be payable only out of profits.
Interest at the rate of 6% .
Firm indemnity a partner for payments and liabilities by him.

6. Relations of parties to one another
If a person derives any profits, for himself from any transaction of the firm, or
from the use of the property or business connection of the firm or the firm
name, he shall account for the profit and pay it to the firm.
If a partner carries on any business of the same nature as and competing with
that of the firm, he shall account for and pay to the firm all profits made by him in
the business.

7. Relations of parties to one another
Subject to contract between the partners, the relation between them is presumed to remain the
same if the constitution of the firm changes for any reason, or if the firm was for a fixed period
when business not included in the original contract is undertaken.

8. The Authority of a Partner
Partner to be agent of the firm
Subject to the provisions of this act, a partner is the agent of the firm for the purpose
of the business of the firm.

9. The Authority of a Partner
Express Authority
Any authority which is expressly given to a partner by the agreement of
partnership called express authority.
Implied Authority
Implied authority means the authority to bind the firm which arises by
implication of law from the facts of partnership.

10. The Authority of a Partner
a) Submit a dispute relating to the business of the firm.
b) Open a banking account on behalf of the firm in his own name.
c) Withdraw a suit on behalf of the firm.
d) Admit any liability in a suit against the firm.
e) Acquire immovable property on behalf of the firm.
f) Transfer immovable property belonging to the firm.
g) Enter into partnership on behalf of the firm.

11. Alteration of Authority
The express or implied authority of a partner may be altered, extended, or restricted by agreement
between the parties at any time.

12. Authority in an Emergency
A partner has authority in an emergency, to do all such acts for the purpose of protecting the firm from
loss as would be done by a person of ordinary prudence.

13. Admission by Partner
An admission or representation made by a partner concerning the affairs of the firm is evidence
against the firm, if it made in the ordinary course of business.

14. Notice to a Partner
Notice to a partner who habitually acts in the business of the firm of any matter relating to the affairs of
the firm operates as notice of the firm, except in the case of a fraud on the firm committed by or with
the consent of that partner.

15. Liability of partners to outsiders
Every partner is liable, jointly with all the other partners and also severally for all acts of the firm done
while he is a partner.

16. Liability of partners to outsiders
Where, by the wrongful act or omission of a partner acting in the ordinary course of the business of a
firm, or with the authority of his partners, loss or injury is cause to any penalty is incurred the firm is
liable therefore to the same extent as the partner.

17. Liability of partners to outsiders
Where,
a) A partner acting within his apparent authority receives money or property from a third party and
misapplies it, or
b) A firm in the course of its business receives money of property from a third party, and the money or
property is misapplied by any of the partners while it is in the custody of the firm, the firm is liable to
make good the loss.

18. Rights of Partners
Conduct of Business
Can Express Opinion
Access, Inspection, Copy
Equality of Profits
Interest on Capital
Interest on Advance
To Get Indemnity

19. Rights of Partners
Application of Property of Firm
Partner‘s Authority
Power in an Emergency
Reconstitution
Dissolution
Rights to Carrying on a Competing Business
Rights to Share Profits Retirement

20. Duties of Partner
Sec. 9- 13(b)
Justice, Faithfulness, True Accounts
To pay indemnity
To attend diligently
No remuneration
Equality of losses
Sec. 13(f)- 25
To pay indemnity for wilful neglect
No private benefit
To account for secret profit
No secret profit
Unlimited liability

21. Partnership by Holding Out or Estoppel
A person may be liable for debts of a firm although he is not a partner.
If a person, by words spoken or written, represent himself, to be a partner of a firm, he is liable as a
partner.

22. Partnership by Holding Out or Estoppel
1
He represented himself
as partner.
3
The other party on faith
of that representation
give credit to the firm.
2
Such representation
occurred by words
spoken or written.

23. Partnership by Holding Out or Estoppel
Retired Partner
A person who has retired from the firm but allows the use of his name may
be liable to third party by the principle of holding out.
Deceased Partner
The legal representative of a deceased partner don’t liable for debts of the
firm.

24. Minor Admitted as a Partner
A minor can not enter into a contract of partnership because an agreement by a minor is void.
The rights and liabilities of such a minor partner are governed by the following rules:
1. The minor has a right to such share of the property.
2. Access to and inspect and copy any of the account of the firm.
3. The minor is not liable for any act.
4. He can not file a suit against the other partners.
5. Within six months of his attaining majority, the minor may give notice that would he or not remain
as member of the firm.

25. Minor Admitted as a Partner
I. His rights and liabilities as a minor continue up to the date on which he becomes a partner.
II. His share in the property and profits of the firm shall be the to which he was entitled as a minor.

26. Minor Admitted as a Partner
I. His rights and liabilities continue to be those of a minor.
II. His share is not liable for any acts.
III. He is entitled to use the partners for his share.

27. Reconstitution of a Firm
Incoming and outgoing partner
The constitution of a firm may be changed
by the introduction of a new partner, death,
retirement, insolvency or by the transfer of
share to an outsider.
Introduce of a new partner
A new partner can be introduced only with
the consent of all the partner.
Retirement of a partner
A new partner may retired
a) With the consent of all other partner
b) In accordance with the teams of the
agreement of partnership
c) Where the partnership is at will
Expulsion of a partner
A partner can be expelled where:
a) When the contract of the partnership
contains a provision for expulsion
b) The power to expel is exercised is good
faith by the majority of partners
c) The expelled partner has been given
notice

28. Reconstitution of a Firm
Insolvency of a partner
When the partner of a firm is adjudicated
an insolvent, he ceases to be a partner
from the date on which the order of
adjudicated was passed by the court.
Death of partner
Ordinarily the death of a partner has the
effect of dissolving the firm.
Transfer of a partner’s interest
A partner may transfer his interest in a firm
to an outsider.
Sub-partnership
The transferee of a partner’s interest in a
firm is sometimes called sub-partner and
the partnership a sub-partnership.

29. Rights of an Outgoing Partner
Revocation of Guarantee
A continuing guarantee given to a firm or
to a third party in respect of the
transactions of a firm is, in the absence
of agreement to the contrary.
To share Subsequent profit
Where any member of a firm is died or otherwise
ceased to be a partner, and the continuing
partners carry on the business. The profit function
is now discussing:
Competing Business
If there is no restraining agreement, an
outgoing partner may carry on a business
completing with that of the firm.
Restraint of Trade
By a special agreement among the
partners, an outgoing partner may
be prevented from carrying on a
similar business.

30. Any Question ?

31. Thank
You