1. N A T U R E , D E F I N I T I O N
A N D
S C O P E
Partnership Act, 1932
2. Introduction
A partnership act is contained in chapter XI of the
Indian Contract Act, 1872. It was deleted from the
Indian Contract Act, 1872 in 1930 and make
separately law as Indian Partnership Act,1930 in
1930.
3. Definition
Partnership is the relation between those person
who agreed upon with the carried on the business
and to share the profit and loss of the business.
In partnership, there are all of the person active in
the partnership business or one is active in the
partnership business behalf of them.
Partners who have entered into partnership with one
another are called individually as a “ partners “.
The name under which their business is carried on
is called the “ firm name
4. Registration of Firm
In partnership, the parties must be competent; and
also they have a free consent, lawful consideration
and lawful object. A partnership can be express or
implied. But it was very advantageous to have
written document of contract of partnership.
The partnership deed is a document in which the
terms, condition and rights, duties, liabilities are
written. This deed is required to be duly stamped as
per the Indian Partnership Act, 1932.
5. Types of Partner
Active Partner
Sleeping Partner
Nominal Partner
Partner in profits only
Minor Partner
Sub Partner
6. Rights of Partner
To take part in the business.
To share the profits equally.
Access to books.
To receive interest on capital.
To indemnify.
To introduction of a new partner.
To retire.
7. Duties of Partners
To give full information.
To attend diligently.
To makes a goods of losses.
To use property of the firm.
To good faith of each partner.
To share losses in equally.
To work without remuneration.
8. Re-constitution of Firm
By retirement.
By death of partner.
By insolvency.
By incoming partner.
By transfer of a partner’s interest.
9. Dissolution of Firm
By agreement
By compulsory
By notice
Insanity
Loss in business
Misconduct
