the Indian Partnership Act 1932ppt[1]

7/26/2019 the Indian Partnership Act 1932ppt[1]

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The Partnership Act, 1932


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Defnition Section 4 o the Partnership Act,

1932 defnes Partnership as the

relation between persons who haveagreed to share the profts o absiness carried on b! all or

an!one o the" acting or all#$The persons who enter into sch

relationship are called %PA&T'(&S)


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(ssential (le"ents o

Partnership Association o two or "ore persons

*a+# li"it 1- or ban.ing/ 2- or other bsiness

&eslt o an agree"ent Partnership relation based on 0ontract# "plied or (+press ral or ritten5

*st carr! on so"e bsiness

Trade, ccpation or Proession Share profts o the bsiness 6siness is carried on b! all or an! one o the"

acting or all "tal agenc!5


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*ode o 0reating

Partnership 6ased on agree"ent Agree"ent "a! be e+press or i"plied

n riting helpl in ti"es o adversit! ritten agree"ent 7Partnership Deed$

(ssence o Partnership Trst 8 0onfdence Drated with care and signed b! all partners

Sta"ped in accordance with ndian Sta"p Act ir" shold be registered and cop! o the

Deed to be fled with the &egistrar


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Partnership Deed Prepared or resolving "tal di:erences

;sal 0ontents

Date o Agree"ent 'a"e and Address o the ir"

'a"e and Address o the Partners

'atre o 6siness

Dration o Partnership

0apital invested b! each partner

&atio to divide profts and loss


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Partnership Deed ;sal 0ontents 0ontd# Appoint"ent o Aditor and re"neration

Drawing b! partners and interest

nterest on 0apital and Advances Salar! and 0o""ission pa!able to partners

Dties, nctions and Powers o Partners

&les regarding ad"ission, retire"ent and death

Dissoltion

Arbitration

*ethod o valation o


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ir" 'a"e 'a"e nder which the bsiness is carried

on

An! na"e Shold not be a na"e alread! adopted b! a

repted fr", to "islead pblic

Shold not contain words 0rown, ("peror,

=ing, >een, &o!al, ("pire, "perial orwords e+pressing or i"pl!ing the sanction,approval or patronage o


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Propert! o the ir" ?oint propert! o all the partners as opposed totheir personal propert!

Propert! incldes

riginall! broght into fr" b! partners Ac@ired b! the fr"

Ac@ired b! one or "ore partners or theprpose o bsiness


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Positions natic cannot beco"e a partner

Alien (ne"! cannot beco"e a partner

Alien riend can enter into contract o"an *arried or ;n"arried can be

a partner

nsolvent 0annot beco"e a partner/ceases to be a partner ro" date onwhich order was passed b! cort


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Position o *inor Sec 3-15, A person who is a "inor

according to law to which he is sbBect

"a! not be a partner in a fr", bt withthe consent o all the partners or theti"e being, he "a! be ad"itted to thebenefts o partnership#

A "inor can onl! be ad"itted to thebenefts o an alread! e+istingpartnership


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Position o *inor Dring his *inorit! &ights

&ight to receive agreed share o profts and

propert! Cave access to and inspect and cop! the

acconts o the fr" share in profts is not given, can se can do i

he wants to sever his connection5 iabilities

nl! to the e+tent o share in profts andproperties not personall! liable5


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Position o *inor n Attaining *aBorit!

ithin si+ "onths shold give notice

whether he is Boining the partnershipor not#

notice not given he shall beco"e a

partner


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Position o *inor hen a *inor elects to beco"e a partner &ights

Share re"ains the sa"e &ights and iabilities as that o a ll edged partner &ights will be the sa"e till the date on which he

beco"es a partner iabilities

iabilities will be the sa"e till the date on which hebeco"es a partner

Personall! liable to third parties or all acts o thefr" ro" the date o beco"ing a partner


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Position o *inor hen a *inor elects not to beco"e a partner

&ights

&ights will be the sa"e till the date o notice (ntitled to se or his share o propert! and

profts

iabilities

iabilities will be the sa"e till the date o notice

Cis share o propert! and profts will not beliable or an! acts o the fr" ater the date onotice


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T!pes o Partnerships Partnership at ill

'o provision in contract between the

partners or Dration o Partnership Deter"ination o Partnership

an! partner gives notice odissoltion in writing, the partnershipis dissolved#


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T!pes o Partnerships Particlar Partnership

A person "a! beco"e a partner with

another person in particlaradventres or nderta.ings#

n co"pletion o sch a ventre, the

partnership co"es to an end#


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T!pes o Partnerships

Partnership or a i+ed Ter" Dration is f+ed

Partnership co"es to an end whenthe ter" e+pires#

Partners contine the bsiness ater

the f+ed period, it beco"espartnership at will#


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0lasses o Partners Actal or Active Partner

(ngaged in actal condct o the bsiness Cis acts binds the fr" and other partners

'otice to be given in case o retire"ent Sleeping or Dor"ant Partner

Does not ta.e part in the condct o bsiness 0ontribtes his share o capital and enBo!s

profts and losses 'ot .nown to otside world 'ot liable to third parties or the acts o the fr"# 'ot re@ired to give notice in case o retire"ent


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0lasses o Partners

'o"inal Partners 'o real interest in bsiness, Does not

contribte an! capital, ends his na"e onl! 'o share in profts bt liable to third parties

or all acts o the fr"

Partner in Profts onl! Shares the profts bt not losses 'o interest in the "anage"ent o the fr"

iabilit! or the acts o the fr" is nli"ited


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0lasses o Partners

Partner b! (stoppel or Colding t &epresents hi"sel as a Partner, b! words

spo.en or written or b! condct

iable as a partner i credit is given to the fr"based on his representation# Ce cannot den!#

a partner does not give pblic notice andhis na"e is still sed in the bsiness, he is

also liable to third parties

Deceased partner is an e+ception to this rle#


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the Indian Partnership Act 1932ppt[1]

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