Uzair A.K. GhouriLaw of Partnership 1932 Introduction Characteristics Types of Partnership Test of Partnership Firm Registration Dissolution

Uzair A.K. Ghouri

Uzair A.K. GhouriLaw of Partnership 1932Definition (u/s: 4)Voluntary association of two or more persons who contribute money, property, time and skills to carry on business for profit and share losses.

Uzair A.K. Ghouri

Uzair A.K. GhouriCharacteristics of PartnershipLegal EntityAgreementNumber of PartnersExistence of BusinessSharing of ProfitUnlimited LiabilityCapitalManagementTransfer of InterestControl

Uzair A.K. Ghouri

Uzair A.K. GhouriTypes of PartnershipTypes of Partnership contain three types which are as follows:

Partnership-at-willParticular PartnershipLimited Partnership

Uzair A.K. Ghouri

Uzair A.K. GhouriTest of PartnershipIn order to determine the existence of partnership, the following must be proved:

There must be an agreement among the persons to be held as partners.The agreement must be for doing some business.The agreement must be to share profit of business.There must be a relationship of principal and agent among the partners.There must be an agreement to carry on the business by all or any of them acting for all.

Uzair A.K. Ghouri

Uzair A.K. GhouriFirmDefinition:The persons who have entered into a partnership with one another are Collectively called a Firm.

Registration of Firm (not essence)Existence of FirmNo separate legal entity

Uzair A.K. Ghouri

Uzair A.K. GhouriProcedure of Registration (not compulsory)Application is submitted with initials of all partners. Application must contain:

NamePlaceObjectAddress of the PartnersDuration (if any)

Registrar if satisfied will registered the Firm.

Uzair A.K. Ghouri

Uzair A.K. GhouriDissolution of FirmWhen relationship between all partners come to an end. Effects will occurs on dissolution on registered firm and non-registered firm.

Suit by PartnerSuit by FirmSuit by Firm against PartnerSuit by Third PartyNo Claim for Adjustment

Uzair A.K. Ghouri

Uzair A.K. GhouriDissolution of PartnershipDissolution of Partnership is different from dissolution of a Firm. When one Partner dies, retires or becomes insolvent but the remaining partners continue the business, it is said to be dissolution of Partnership (dissolution of firm includes the dissolution of partnership, but the dissolution of partnership may or may not include the dissolution of the firm.)

Uzair A.K. Ghouri