Partnership and Business Law

As per section 139 (2) of Companies Act,2013, proposed audit firm having partner who is also a partner in the retiring audit frim is ineligible to act as the auditor of the company

Partnership is valid legally only if it is in the written format in the stamp paper.

Interest in business is easily transfrable at will.

Section 30(5) of the Indian Partnership Act, 1932 requires a minor (admitted to partnership benefits) to decide within six months of attaining majority whether to become a partner. If no decision is communicated within this period, it's presumed that the minor has chosen not to become a partner.

Section 31 of the Indian Partnership Act, 1932 requires the consent of all existing partners when introducing a new partner. Since partnership is based on mutual agency and trust, the admission fundamentally changes each partner's relationship and liability, requiring unanimous agreement rather than mere majority approval.

In accordance with Partnership Act, the profit or loss divided equally.

If the behaviour of a person arouses misunderstanding that he is a partner in a firm (when actually he is not), such a person is estopped from later on denying the liabilities for the acts of the firm. Such a person is called a partner by estoppel and is liable to all third parties.

Every partner, whether active or dormant, has a right of free access to all records, books and accounts of the business and also to examine and copy them. Every partner has a right to take part in the conduct and management of the business. Every partner is entitled to share in the profits equally, unless different proportions are stipulated. However, a partner has no right to receive any fixed remuneration from the firm.

As per statute, partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. Existence of an agreement is essential for partnership. An agreement between the partners may be expressed or implied. Thus, the relationship of partnership arises out of both statute as well as an agreement.

All partners are liable jointly and severally for all acts or omissions binding on the firm, including liabilities arising from contracts as well as torts.

Section 10 of the Indian Partnership Act, 1932 specifically provides that every partner must indemnify the firm for any loss caused by their fraud in conducting business. The section is limited to fraud and does not extend to negligence or wrongful acts generally. The narrow scope is intentional to protect firms from willful misconduct while allowing for ordinary business risks taken in good faith.

Under Section 7 of the Indian Partnership Act, 1932, a partnership where no fixed duration is specified is called a 'partnership at will'. This means either partner can dissolve the firm by giving proper notice. A general partnership refers to the broader category, a particular partnership is for a specific venture or transaction, and co-ownership is a distinct legal concept involving joint property ownership without mutual agency.

A partnership firm is not a separate legal entity from its partners - it's merely an aggregate of partners who work together. Unlike a company, which has a separate legal identity, a partnership firm cannot hold property or sue/be sued in its own name. The partners are personally liable for the firm's obligations.

Under Section 25 of the Indian Partnership Act, 1932, partners have joint and several liability for the firm's acts. This means creditors can sue all partners together (joint) or any one partner for the entire debt (several). This provision protects third parties dealing with the firm by ensuring they can recover from any partner.

Correct; when no agreement is there, profits are equally shared or are shared in the ratio of 1 : 1 : 1.