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PARTNERSHIP - Coggle Diagram
PARTNERSHIP
DEFINITION
Section 3(1)
The
relation
which subsists between
persons
carrying on business in common with a
view of profit.
ELEMENTS
more than one
business in common
buisness for profit
NATURE
Legal status
NOT a separate legal entity
Number of members
2-20 partners
professional: 2-200 members
Management
Partners responsibility
RULES FOR DETERMINING THE EXISTENCE OF A PARTNERSHIP
Section 4(a)
Join ownership/tenancy
A person get profit from the use of property does not necessarily means that there is partnership
Section 4(b)
Sharing of gross returns
Section 4(c)
Sharing of profits
EXCEPTIONS
payment of debt by instalment
remuneration
annuity
payment of loan / interest out of loan
sale of goodwill
RELATIONSHIP OF PARTNERS AND 3RD PARTIES
Section 7
all acts done by a partner bind another
Conditions
Purpose of the business partnership
in the firm ordinary course of business
Done by the partner as a partner
LIABILITY OF PARTNERS
Section 11 - Contractual
Section 12 - Tortious
Criminal - not jointly liable
Holding out - not authorised
TYPES OF PARTNER
Active
Quasi
Salaried
Dormant / Sleeping partner
CONSIDERED PARTNER
Section 19(1) - Incoming partner
Section 19(2) and (3) - Retiring partner
CAPACITY
not a minor
of sound mind
ILLEGAL PARTNERSHIP
illegal purposes
exceed number of partners
DISSOLUTION
Court's intervention
Section 37
Lunatic
Permanently incapable
Guilty
Breach of partnership
Loss
Just and equitable
Without court's intervention
Section 34
Fixed term
Single adventure
Notice
Section 35
Death
Bankrupt
Charge
Section 36
Illegality