close

Log In

Wrong Credentials !

Forget Password?
Create an account
Facebook
Google

Partnership Laws

Find a partnership expert lawyer in India.


  • What is Partnership?
  • Why Partnership?
  • Which Laws Govern Partnership?
  • How to End Partnership?
  • What are the Liabilities of Partners in Partnership?

Prior to 1932, Chapter XI (Sections 239 to 266) of the Indian Contract Act, 1872 contained the law relating to partnership in India. As these provisions were not exhaustive, it was considered expedient and necessary to separate the law relating to partnership and to embody it in a separate enactment. Hence, the Indian Partnership Act, 1932 was brought to the fore.

What Is Partnership?

It is a type of Business where two or more persons pool money, skill and other resources and share the profit of such business as per agreed terms in Partnership Agreement. The liabilities and risks associated in such business is shared as per the Agreement or if there is no agreement then it is shared proportionately.

Advantages of Partnership

  • Easy to establish.
  • Easy to Raise Funds.
  • Wide pool of Knowledge, Skill and Contacts.
  • Improved Management.
  • Sharing of Profit and Loss.
  • Equal Rights in Management.

Laws Governing Partnership

  • A partnership firm is not a distinct legal entity apart from the partners constituting it, i.e. a partnership firm is not a ‘person in law’ but is merely an association of individuals.
  • As per Section 4 of the Act, 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.
  • An agreement of partnership need not be express but can be inferred from the course of conduct of the parties to the agreement
  • As per Section 11 of the Act, the mutual rights and duties of the partners of the firm may be determined by contract between the partners, and such contract may be expressed or may be implied by the course of dealing.
  • As per Section 29 of the Act, a transfer by a partner of his rights in the firm, either absolute or by mortgage, or by the creation by him of a charge on such interest, does not entitle the transferee, during the continuance of the firm, to interfere in the conduct of the business, or to require accounts, or to inspect the books of the firm, but entitles the transferee only to receive the share of profits of the transferring partner, and the transferee shall accept the account of profits agreed to by the partners. As per Section 31 of the Act, no person shall be introduced as a partner into a firm without the consent of all the existing partners.
  • As per Section 33 of the Act, a partner may not be expelled from a firm by any majority of the partner, save in the exercise in good faith of powers conferred by contract between the partners. (Rules of Section 32 can be applicable to an expelled partner)

Dissolution of Partnership

  • Dissolution by Mutual Agreement
  • Dissolution by Court.

Dissolution by Mutual Agreement

  • By Agreement (Section 40 Of Indian Partnership Act,1932).
  • By Compulsory Dissolution (Section 41 Of Indian Partnership Act,1932).
  • Dissolution by Happening of a Contingent Event (Section 42 Of Indian Partnership Act,1932).
  • Dissolution by Notice (Section 43 Of Indian Partnership Act,1932).

Dissolution by Court

  • Insanity of Partner.
  • Incapacity of Partner.
  • Misconduct of Partner.
  • Constant Breach of Agreement of Partner.
  • Transfer of Interest.
  • Continuous Losses.

The most trusted and relied upon partner for hiring lawyers and for any kind of legal services.

Want a quick Legal Advice from Expert Lawyer?

For quick legal advice on phone - Talk to our expert Lawyers to get the right information and right guidance

Get services from the best Lawyers of India in an affordable price

Call us at the Toll Free number for Legal Help at an affordable price

1800 120 331324x7

Request a Callback for Legal Help


Name must be provided !

Email must be provided !

Phone Number must be provided !

Details must be provided !

In case you want us to call you back to understand your legal problem then please submit your details with a brief description of the legal issue that you have.

We will call you back.

Need Legal Service ?

Post and tell us your legal requirement.

Best Lawyers from India will pick up your case

We have 1500+ Lawyers registered with us. Once your submit your request it reaches to all the expert Lawyers in that field. Interested Lawyers will provide you the quote Know More

Testimonials


Partnership Lawyer in Agra
Partnership Lawyer in Ahmadabad
Partnership Lawyer in Allahabad
Partnership Lawyer in Amravati
Partnership Lawyer in Amritsar
Partnership Lawyer in Asansol
Partnership Lawyer in Aurangabad
Partnership Lawyer in Bangalore
Partnership Lawyer in Belgaum
Partnership Lawyer in Bhopal
Partnership Lawyer in Bhubaneswar
Partnership Lawyer in Chandigarh
Partnership Lawyer in Chennai
Partnership Lawyer in Coimbatore
Partnership Lawyer in Delhi
Partnership Lawyer in Dhanbad

Partnership Lawyer in Durgapur
Partnership Lawyer in Faridabad
Partnership Lawyer in Ghaziabad
Partnership Lawyer in Guntur
Partnership Lawyer in Gurgaon
Partnership Lawyer in Guwahati
Partnership Lawyer in Gwalior
Partnership Lawyer in Howrah
Partnership Lawyer in Hyderabad
Partnership Lawyer in Indore
Partnership Lawyer in Jabalpur
Partnership Lawyer in Jaipur
Partnership Lawyer in Jamnagar
Partnership Lawyer in Jamshedpur
Partnership Lawyer in Kanpur
Partnership Lawyer in Kochi

Partnership Lawyer in Kolkata
Partnership Lawyer in Lucknow
Partnership Lawyer in Ludhiana
Partnership Lawyer in Madurai
Partnership Lawyer in Mangalore
Partnership Lawyer in Meerut
Partnership Lawyer in Mumbai
Partnership Lawyer in Mysore
Partnership Lawyer in Nagpur
Partnership Lawyer in Nashik
Partnership Lawyer in Navi Mumbai
Partnership Lawyer in Nellore
Partnership Lawyer in Noida
Partnership Lawyer in Patna
Partnership Lawyer in Pune
Partnership Lawyer in Raipur

Partnership Lawyer in Rajkot
Partnership Lawyer in Ranchi
Partnership Lawyer in Rourkela
Partnership Lawyer in Salem
Partnership Lawyer in Siliguri
Partnership Lawyer in Surat
Partnership Lawyer in Thane
Partnership Lawyer in Thiruvananthapuram
Partnership Lawyer in Tiruchirappalli
Partnership Lawyer in Vadodara
Partnership Lawyer in Varanasi
Partnership Lawyer in Vijayawada
Partnership Lawyer in Visakhapatnam