| define partnership act ? | sec 4 of IPA 1932 say
partnership is the relation between person who have agreed to share the profit of a business carried on by all or any one of then acting for all. |
| Essential element of partnership | 1. association of two or more person
2. agreement between person
3. business
4. sharing of profit
5. mutual agency |
| Association of two or more person.
describe? | 1. at least 2 person
2. maximum no= as per partnership act its silent. but CoMPANY ACT sec 464 say there shld be maximun 50 person.
3. if no of maximum person exceeds the it will become illegal association |
| describe?
agreement bet 2 person. | the relation of partnership arise from contract not from status.
agreement shld be expressed or implied
voluntary and contractual in nature |
| describe
business? | sec 2(b) states business includes every trade, occupation and profession partnership can form for doing business and not for any charitable or social work. |
| sharing of profit | its is ESSENTIAL CONDITION for partnership. but not the conclusive test.
if only one partner is entitle to share profit then there will be no partnership bet them |
| mutal agency. | CARDINAL PRINCIPAL of PA.
each partner is the agent of firm as well as principal of he other partner.
thus, a partner is both an agent and principal.
he can bind others with his act and can be bound by the act of others also |
