BUSINESS LAW

INDIAN PARTNERSHIP ACT, 1932

Submitted By :Makwana Snehit 14BBA013
Patel Atit 14BBA022
Patel Maharshi 14BBA036 Rathod Mayor
14BBA053
Ravaliya Jay 14BBA054
Shah Jeet14BBA056

Submitted to :Mr. Arpit Patel

11/01/2016

Presentation Outline
Introduction
Definition
Types of Partnership
Types of Partners
Essential Elements Of a Partnership
Partnership Deed
Contents of Partnership Deed
Rights Of Partners
Advantage of Partnership Firm
Disadvantage of Partnership Firm
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Introduction
One of the forms in which business can be
carried on is Partnership, where two or
more persons join together to form the
partnership and run the business. In order
to govern and guide partnership, the
Indian Partnership Act, 1932 was enacted

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Definition
As per Section 4 of Indian partnership Act,
1932
Partnership is the relation between two or
more persons who have agreed to share the
profits of a business carried on by all or any
of the acting for all.

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Types of Partnership
1. Partnership at will :
Where no provision is made by contract
between the partners for the duration of their
partnership, the partnership is Partnership at
will.
The essence of a partnership at will is that the
partners do not fix any term of partnership and
free to break their relationship at any time.
And it is also should be for an indefinite period.
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Cont
2. Particular partnership :
When a partnership is formed for a particular
period or for a particular venture, it is called
Particular partnership.
In such a case, the partnership is automatically
dissolved at the expiry of the fixed term or on
the completion of the venture.

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Types of Partners
Actual partner
Sleeping partner
Nominal partner
Sub-partner
Partner in profits only

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Essential Elements of a
Partnership
There must be a contract.
Between two or more persons.
Who agree to carry on business.
With the object of sharing profits.
The business must be carried on by all or
any of them acting for all.

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Partnership Deed
The document which contains the term of
a partnership as agreed among the
partners is called Partnership Deed
The Partnership Deed is to be duly
stamped as per the Indian contract Act.
And duly signed by all the partners.

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Contents of Partnership
Deed
Name of the firm
Name and addresses of the Partners
Nature and place of firm
Duration of Partnership
Share of Partners in profits and losses
Details of Bank account of firm
Powers of partners
Settlement of disputes
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Rights of Partners
Right to take part in management
Right to be consulted
Right to access the books
Right to share profit
Right as an of the firm
Right to use property of firm
Right of competing business
Right to prevent admission of a new
partner
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Advantage of Partnership
Firm
Easy to form
Availability of large resources
Better decisions
Flexibility in operations
Sharing risks
Benefits of specialization
Protection of interest of each partner

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Disadvantage of Partnership
Firm
Unlimited liability
Uncertain life
No transferability of share
Lake of harmony
Limited capital

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Example
1. A is a goldsmith. He agrees with B to
buy and provide gold to B for
making ornaments. They plan to sell
the ornaments and share the profit.
Here, A and B are partners.

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Cont
2. A and B are carpenters. They decide
to work together. But they have an
agreement under which A will keep
all the profits and pay B a predetermined salary.
Here, A and B are not partners.

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Conclusion
Partnership is an intangible relationship
between two or more people. It arises only
out of a contract which may be express or
implied. If two or more persons work in the
same business and agree to share profits
and losses, it is still not a partnership
unless there is mutual agency.

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Reference
http://studygalaxy.com
www.afterschool.tk
www.learn4good.com/businesslaw
Business Law and the Legal Environment,v. 1.0 (2 Volume
Set)
http://
www.mca.gov.in/Ministry/actsbills/pdf/Partnership_Act_193
2.pdf
https://
mponline.gov.in/Quick%20Links/FirmsAndSociety/IPA1932En
glish.pdf
http://
www.mca.gov.in/Ministry/actsbills/pdf/Partnership_Act_193
2.pdf
http://
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www.dphu.org/uploads/attachements/books/books_3498_0.

Thank you

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