The Partnership Comes Into Existence Only An Agreement

Partnership is a relationship between partners. It is dissolved each time there is death, bankruptcy or retirement of a partner. A new act of partnership must be prepared. Therefore, partnership companies do not have a very long lifespan. The purpose of the partnership contract is to manage a government-authorized activity and make a profit. There is no partnership for the performance of community or social service or illegal activity, for example. B undeclared marketing or smuggling. Section 11 of the Indian Partnership Act of 1932 provides that the maximum number of persons a business may have is 10 when a partnership enterprise engages in banking. In the case of a partnership enterprise that carries out another activity, the number of partners may be 20. If the number of partners exceeds the aforementioned limit, the partnership company becomes an illegal association. 7) Freedom of mutual choice is the real test. The real test of the «partnership company» is the «mutual agency» established by the Indian courts, i.e.

whether a partner can bind the company by his action, i.e. whether he can act as a representative of all other partners. [25] The characteristics of the form of organisation of the partnership are examined as follows: the partnership is the result of a contract or agreement concluded between or between the partners. It is not due to birth, status, inheritance or succession. The contract or agreement between the persons may be oral or written. As a general rule, however, the contract is available in writing. As a common law, there are two fundamental forms of partnership: [18] (i) Property originally acquired. – All rights and ownership shares that were initially initiated by the partners as a contribution to the joint transaction in the ordinary shares. A, B and C entered into a partnership and agreed to continue the cotton spinner business in a cotton spinning mill in «A».

The value of the mill was determined and A was credited in the company`s books. It was found that the mill belonged to the company Robinson v. Aston. A partner cannot transfer his interest in the company to a foreigner without the agreement of other partners. There is a strict restriction for the reception and retirement of a partner. All changes concerning the partners shall be made in accordance with the agreement and with the agreement of all the partners. . . .