SHARE OF PROFIT OF BUSINESS
What is a partnership?
Definition:“Partnership may be a relation between persons UN agency have in agreement to share the profits of a business carried on by all or any of them acting for all”
Explanation:
A partnership may be a relationship that arises from a contract and not from the statute.
Example:
The member of a Hindu undivided family carrying on a private corporation in and of itself doesn't seem to be partners; a Burmese Buddhist husband and partner carrying on business in and of itself don't seem to be partners in such business.
Definition of partner:
“Persons UN agency have entered into a partnership with each other square measure referred to as severally “partners””
Firm:
Persons UN agency have entered into a partnership with each other square measure together referred to as a “Firm”. and therefore the same beneath that their business is carried on is termed the “firm name”.
Partnership at will:
Where no provision is created by a contract between the partners for the period of their partnership, for the determination of their relationship, the partnership is “partnership at will”.
Particular partnership:
A person could become a partner with another person, especially in adventures or undertakings.
Determination of partnership:
In crucial whether or not a gaggle of persons is or isn't a firm. Or whether or not someone is or isn't a partner infirm, regard shall be had to the important relationship between the parties, as shown by all relevant facts taken along.
Examples:
The sharing of profits or of gross returns arising from property by persons holding a joint or common interest in this property doesn't of itself create such personal partners. The receipt by someone of a share of the profits of the business, or of a payment contingent upon the earning of profits or varied with the profits earned by a business, doesn't of itself create him a partner with persons carrying on the business.
The partnership act does not apply to banking companies:
A relationship is created by any agreement between a financial organization and someone or cluster of persons provided by sharing of profit and, losses arising from or regarding the supply by the financial organization of finance to such persons or clusters of persons.
Determination of rights and duties:
The mutual rights and duties of the partners of a firm could also be determined by the contract between the partners, and the such contract could also be expressed or could also be inexplicit by a course of dealing. The such contract could also be varied by consent of all the partners and such consent could also be expressed or could also be inexplicit by the course of dealing.
General duty of partners:
Partners square measure sure to carry on the business of the firm to the best common benefits, to be simple and trustworthy to every different, and to render true accounts and full info of all things poignant the firm to any partner or his personal representative.
Property of the Firm:
The property of the firm includes all property and rights and interest in a property originally brought into the stock of the firm, or noninheritable, by purchase or otherwise, by or for the firm, or for the needs and within the course of the business of the firm, and includes conjointly the good-will of the business. Unless the contrary intention seems, property and rights and interest in property noninheritable with cash happiness to the firm square measure deemed to possess noninheritable for the firm.
Application of the property of the firm:
The property of the firm shall be commanded and employed by the partners completely for the aim of the business.
Duty to indemnify for loss caused by fraud within the conduct of the business of the firm.
Partner to be an agent of the firm: A partner is the agent of the firm for the needs of the business of the firm. Implied authority: The authority of a partner to bind the firm given by sec.19 is termed “implied authority”.
Registered deed of Association:
Partners square measure the homeowners of the firm and therefore the rights and skill of the firm square measure the rights and liability of the partners.
Each partner is an Associate in Nursing agent of the firm.
Extension and restriction of partner’s inexplicit authority:
The partners in an exceedingly firm could, by contract between the partners, extend or prohibit the inexplicit authority of any partner. Partner’s authority in Associate in Nursing emergency:
Minors admitted to the advantages of partnership:
A person UN agency is minor in keeping with the law to that he's the subject might not be a partner in an exceedingly firm, but, with the consent of all the partners for the nonce, he could also be admitted to the advantages of partnership.