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Lecture 10. Partnership Act
Lecture 10. Partnership Act
Lecture 10. Partnership Act
Act
Lecture 10
Mutual Relations of
Partners (Relations of
Partners with one another)
Principles governing Mutual
Relations of Partners
1.
2.
2.
3.
4.
5.
6.
To
To
To
To
To
To
1.
a)
b)
1.
2.
3.
4.
5.
i)
ii)
To be indemnified
Expenses incurred in the ordinary course of
partnership business
Expenses incurred in an emergency to
protect the firm from loss
To use partnership property
To retire from the firm
To remain in the firm
To receive remuneration
Right of a retiring partner
To carry on competing business after
retirement.
To share the subsequent profits as may be
attributable to use of retired partners
property by the firm
Fundamental Duties of
Partners
1.
2.
3.
4.
5.
1.
2.
3.
4.
5.
6.
7.
8.
Authority of a Partner
a)
i)
ii)
a)
Actual authority
Express authority
Implied authority
Apparent or Ostensible Authority
i)
ii)
The act
done in
firm
The act
done in
way
must be
the name the
should be
the usual
In Mathura Nath
Chaoudhary vs.
Bageshwari Rani, the
business of the firm
was to catch elephants
and for this purpose, it
b)
c)
d)
e)
f)
g)
h)
i)
a)
b)
c)
d)
e)
f)
g)
Partners Authority in an
Emergency
a)
b)
c)
2.
a)
b)
c)
1.
2.
1.
.
2.
3.
2.
3.
4.
Deceased partner
Insolvent partner
Sleeping partner
Partners torts
Dissolution of
Firm
Under Section 39, dissolution of firm
means the dissolution of partnership
between all the partners of the firm. In
this case the business of the firm is closed
down and the relation of the partnership
subsisting between the partners is
terminated. The affairs of the firm are
wound up.
Dissolution of Partnership
A change in the relations of partners is called
dissolution of partnership. The partnership is
reconstituted. Dissolution of partnership may or
may not result in the dissolution of the firm. But
dissolution of the firm must necessarily cause
dissolution of partnership
A and B were partners in a firm. They admit C as a
new partner. It will cause dissolution of partnership
between A and B. A reconstituted firm as formed
by partnership between A, B and C comes into
II.
2.
i)
ii)
1.
i)
ii)
iii)
iv)
1.
b)
c)
d)
e)
f)
g)
a)
b)
1.
2.
1.
a)
b)
c)
d)
1.
a)
b)
c)
1.
a)
b)
1.
2.
3.
Modes of Settlement of
Accounts
1.
2.
a)
b)
c)
d)
1.
1.
a)
b)