https://vuhelp.net/ Fri, 30 Oct 2026 22:53:15 +0000 MyBB https://vuhelp.net/Thread-What-are-implied-authorities-of-a-partner Wed, 30 Nov 2011 06:13:30 -0500 Xpert]]> https://vuhelp.net/Thread-What-are-implied-authorities-of-a-partner Implied authority Q. What are implied authorities of a partner? What matters have been excluded specifically from such authorities by the act.
1. Introduction:
Under partnership act 1932 every partner has right to takes part in management of business of the firm. Business is carried on by all the partners or any of them acting for all the partners. The partner have to exercise their authorities in order to conduct the business. The authority of a partner to act be express or implied.
2. Implied authority:
Where there is no express agreement, the act of a partner which is done to carry on in the usual way, business of the kind carried on by the firm binds the firm. It is implied authority.
3. Form of authority
Authority may be:
(i) Express or
(ii) Implied
4. Conditions of implied authority:
Conditions of implied authority are as under.
(a) Conditions on behalf of firm:
Act done by a partner is on behalf of a firm.
(b) Act done as partner:
Act done on behalf of firm is done by person as a partner of firm.
© Use the name of firm:
The act is done in the name of the firm.
(d) Business objects:
Act done is for business objects a firm.
(e) To carry on business:
The act done relates to the normal business of the firm.
5. Implied authority of a partner:
A partner can do the following acts under implied authority.
(I) Borrowing money:
A partner can borrow money on the credit of the firm
Case law
1987 CLC 2541
It was held that one partner can borrow on credit on the firm if the firm is trading firms, and no duty is cast upon the person advancing money to make any further enquiry.
(II) Purchasing of goods:
He can purchase goods for the firm on credit if it is necessary to carry on the business.
Case law
1998 CLC 1684
It was held that a partner had no implied authority to bind his firm by opening a bank account in his own name.
(III) Contracts:
He can make contract on behalf of firm.
Case law
P. L. D 1966 Lah. 452
It was held that where a partner enter into contract on behalf of the firm and his partner do not object to the contract, the opposite party can not say that the contract was entered into by the partner of the firm.
(IV) To sale property of firm:
He can sale the goods of the firm, (moveable)
(V) Granting the receipt:
He can issue receipt on behalf of a firm.
(VI) To pledge:
He can pledge property of firm for loan.
(VII) To receive money:
He can receive payment on behalf of firm.
(VIII) Legal services:
He can engage solicitor to defend an action against the firm.
(IX) Settlement of accounts:
He can settle accounts with the persons dealing with the firm.
6. Acts outside implied authority:
A partner can not do the following acts.
(I) Submit a dispute to arbitration:
He cannot submit a dispute relating to the business of the firm for arbitration.
(II) Bank account:
He can not open a bank account on behalf of the firm in his own name.
(III) Compromise:
He can not compromise any claim or portion of any claim by the firm.
(IV) Withdrawal of suit:
He can not withdraw any suit filed by the firm.
(V) Admit any liability:
He cannot admit any liability in a suit against the firm.
(VI) Acquire immoveable property:
He cannot acquire any immovable property on behalf of firm.
(VII) Transfer of immoveable property:
He can not transfer immovable property belonging to firm.
(VIII) Agreement:
He cannot enter in to agreement of partnership on behalf of firm.
7. Conclusion:
To conclusion it can be said that, implied authority is an authority of partner which binds the firm by his act under law. The scope of implied authority is linked with the nature of business of the firm. A partner’s authority is either implied or express. An act done by a partner which does not fall within the scope of his implied authority does not bind the firm.

  Implied authority.doc (Size: 29.5 KB / Downloads: 589) ]]> Implied authority Q. What are implied authorities of a partner? What matters have been excluded specifically from such authorities by the act.
1. Introduction:
Under partnership act 1932 every partner has right to takes part in management of business of the firm. Business is carried on by all the partners or any of them acting for all the partners. The partner have to exercise their authorities in order to conduct the business. The authority of a partner to act be express or implied.
2. Implied authority:
Where there is no express agreement, the act of a partner which is done to carry on in the usual way, business of the kind carried on by the firm binds the firm. It is implied authority.
3. Form of authority
Authority may be:
(i) Express or
(ii) Implied
4. Conditions of implied authority:
Conditions of implied authority are as under.
(a) Conditions on behalf of firm:
Act done by a partner is on behalf of a firm.
(b) Act done as partner:
Act done on behalf of firm is done by person as a partner of firm.
© Use the name of firm:
The act is done in the name of the firm.
(d) Business objects:
Act done is for business objects a firm.
(e) To carry on business:
The act done relates to the normal business of the firm.
5. Implied authority of a partner:
A partner can do the following acts under implied authority.
(I) Borrowing money:
A partner can borrow money on the credit of the firm
Case law
1987 CLC 2541
It was held that one partner can borrow on credit on the firm if the firm is trading firms, and no duty is cast upon the person advancing money to make any further enquiry.
(II) Purchasing of goods:
He can purchase goods for the firm on credit if it is necessary to carry on the business.
Case law
1998 CLC 1684
It was held that a partner had no implied authority to bind his firm by opening a bank account in his own name.
(III) Contracts:
He can make contract on behalf of firm.
Case law
P. L. D 1966 Lah. 452
It was held that where a partner enter into contract on behalf of the firm and his partner do not object to the contract, the opposite party can not say that the contract was entered into by the partner of the firm.
(IV) To sale property of firm:
He can sale the goods of the firm, (moveable)
(V) Granting the receipt:
He can issue receipt on behalf of a firm.
(VI) To pledge:
He can pledge property of firm for loan.
(VII) To receive money:
He can receive payment on behalf of firm.
(VIII) Legal services:
He can engage solicitor to defend an action against the firm.
(IX) Settlement of accounts:
He can settle accounts with the persons dealing with the firm.
6. Acts outside implied authority:
A partner can not do the following acts.
(I) Submit a dispute to arbitration:
He cannot submit a dispute relating to the business of the firm for arbitration.
(II) Bank account:
He can not open a bank account on behalf of the firm in his own name.
(III) Compromise:
He can not compromise any claim or portion of any claim by the firm.
(IV) Withdrawal of suit:
He can not withdraw any suit filed by the firm.
(V) Admit any liability:
He cannot admit any liability in a suit against the firm.
(VI) Acquire immoveable property:
He cannot acquire any immovable property on behalf of firm.
(VII) Transfer of immoveable property:
He can not transfer immovable property belonging to firm.
(VIII) Agreement:
He cannot enter in to agreement of partnership on behalf of firm.
7. Conclusion:
To conclusion it can be said that, implied authority is an authority of partner which binds the firm by his act under law. The scope of implied authority is linked with the nature of business of the firm. A partner’s authority is either implied or express. An act done by a partner which does not fall within the scope of his implied authority does not bind the firm.

  Implied authority.doc (Size: 29.5 KB / Downloads: 589) ]]> https://vuhelp.net/Thread-Define-partnership-What-are-the-essentials-of-partnership Wed, 30 Nov 2011 06:09:38 -0500 Xpert]]> https://vuhelp.net/Thread-Define-partnership-What-are-the-essentials-of-partnership

Partnership

Q. Define partnership. What are the essentials of partnership.
1. Introduction:
A partnership is mean of bringing together the person who can contributes capital skill for expansion of business. This type of business is very popular in our country.
2. Definition:
According to Sec. 4
“Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any one of them acting for all”.
3. Elements of partnership:
Following are the features of partnership.
(i) It is the result of an agreement.
(ii) Agreement is between two or more persons.
(iii) It is organized to carry on some business.
(iv) Persons should be agree to share the profit of business.
(v) Business is to be carried on by all or any of them acting for all.
4. Feature of partnership:
Following are the essentials of partnership.
(I) Agreement:
Partnership is the result of agreement without it partnership can not be formed. It may be written or oral.
(II) Registration:
Registration of partnership is not necessary.
(III) Number of patners:
There must be two member.
(IV) Business:
The object of partnership is to carry on business.
(V) Unlimited liability:
The liability of partner is unlimited to the invested.
(VI) Profit and loss distribution:
Profits is distributed among the partners according to their agreement in case of loss all the partners share in it.
Case law
P. L. D 1971 Lah. 396
It was held that where a partnership deed instead of fixing the shares of the partners incorporates the provisions of partnership act in the deed, the shares of the partners will be governed by he partnership act.
(VII) Legal entity:
Partnership has not separate entity from its member.
(VIII) Management:
All the partner can participate activity in the affairs of business.
(IX) Payment of tax:
Each partner pays tax on his share of profit individually.
(X) Co-operation:
The success of the business depends upon mutual trust and confidence.
(XI) Share in capital:
Capital of the firm is supplied by the all partners according to the agreement.
(XII) No audit:
In the business of partnership no audit is necessary.
(XIII) Mutual agency:
Business may be carried on by all or any of them acting for all. Each is a principal and an agent.
(XIV) Transfer of interest:
A partner cannot transfer his interest with out the consent of other partners.
(XV) Dissolution:
Partnership is dissolved easily. It operates the pleasure of partner.
5. Kinds of partnership:
Following are the kinds of partnership.
(I) Partnership at will:
If no provision is made in the agreement regarding the duration of the partnership it is called partner ship at will.
(II) Particular partnership:
Such partnership is formed to do a particular business.
(III) Limited partnership:
The liability of limited partner is limited to the extent of his investment in the business.
(IV) Registered partnership:
The registration of partnership is not compulsory when a partnership is registered. It is called registered partnership.
(V) Un-registered partnership:
Partnership which is not registered. It is called unregistered partnership.
6. Conclusion:
To conclusion it can be said that, A partnership is a form of business. It has at least two member. Who joined capital or services for prosecuting of some business.

  Partnership.doc (Size: 28.5 KB / Downloads: 571) ]]>

Partnership

Q. Define partnership. What are the essentials of partnership.
1. Introduction:
A partnership is mean of bringing together the person who can contributes capital skill for expansion of business. This type of business is very popular in our country.
2. Definition:
According to Sec. 4
“Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any one of them acting for all”.
3. Elements of partnership:
Following are the features of partnership.
(i) It is the result of an agreement.
(ii) Agreement is between two or more persons.
(iii) It is organized to carry on some business.
(iv) Persons should be agree to share the profit of business.
(v) Business is to be carried on by all or any of them acting for all.
4. Feature of partnership:
Following are the essentials of partnership.
(I) Agreement:
Partnership is the result of agreement without it partnership can not be formed. It may be written or oral.
(II) Registration:
Registration of partnership is not necessary.
(III) Number of patners:
There must be two member.
(IV) Business:
The object of partnership is to carry on business.
(V) Unlimited liability:
The liability of partner is unlimited to the invested.
(VI) Profit and loss distribution:
Profits is distributed among the partners according to their agreement in case of loss all the partners share in it.
Case law
P. L. D 1971 Lah. 396
It was held that where a partnership deed instead of fixing the shares of the partners incorporates the provisions of partnership act in the deed, the shares of the partners will be governed by he partnership act.
(VII) Legal entity:
Partnership has not separate entity from its member.
(VIII) Management:
All the partner can participate activity in the affairs of business.
(IX) Payment of tax:
Each partner pays tax on his share of profit individually.
(X) Co-operation:
The success of the business depends upon mutual trust and confidence.
(XI) Share in capital:
Capital of the firm is supplied by the all partners according to the agreement.
(XII) No audit:
In the business of partnership no audit is necessary.
(XIII) Mutual agency:
Business may be carried on by all or any of them acting for all. Each is a principal and an agent.
(XIV) Transfer of interest:
A partner cannot transfer his interest with out the consent of other partners.
(XV) Dissolution:
Partnership is dissolved easily. It operates the pleasure of partner.
5. Kinds of partnership:
Following are the kinds of partnership.
(I) Partnership at will:
If no provision is made in the agreement regarding the duration of the partnership it is called partner ship at will.
(II) Particular partnership:
Such partnership is formed to do a particular business.
(III) Limited partnership:
The liability of limited partner is limited to the extent of his investment in the business.
(IV) Registered partnership:
The registration of partnership is not compulsory when a partnership is registered. It is called registered partnership.
(V) Un-registered partnership:
Partnership which is not registered. It is called unregistered partnership.
6. Conclusion:
To conclusion it can be said that, A partnership is a form of business. It has at least two member. Who joined capital or services for prosecuting of some business.

  Partnership.doc (Size: 28.5 KB / Downloads: 571) ]]> https://vuhelp.net/Thread-Can-a-minor-become-a-partner-in-a-firm-Discuss-the-rights-and-liabilities Wed, 30 Nov 2011 06:06:36 -0500 Xpert]]> https://vuhelp.net/Thread-Can-a-minor-become-a-partner-in-a-firm-Discuss-the-rights-and-liabilities Position of minor in a firm Q. Can a minor become a partner in a firm? Discuss the rights and liabilities of a minor admitted to the benefit of a partnership.
1. Introduction:
A minor is not competent to contract so he cannot enter into a contract. Under partnership act a minor may be admitted to partnership with the consent of all other partners.
According to Sec. 3(i)
“Every partner has a right to prevent the introduction of a partner unless he consents to that.”
2. Definition of minor:
“A minor is a person who has not completed 18 year of age”.
3. Law regarding minor of becoming partner of firm:
According to Sec. 30
“A person who is a minor according to the law which he is subject, may not be a partner in a firm, but with the consent of all partners for the time being, he may be admitted to the benefits of partnership.”
Case law
P. L. D 1955 Lah. 350
It was held that under contract act a minor is incapable of entering into any contract thus a minor can not be partner in a firm but he can only be admitted to the benefit of partnership.
4. Important rules:
(i) There must be a partnership in existence before a minor can be admitted to its benefit.
(ii) Consent of all partners is necessary.
(iii) There can not be a partnership consisting of all minors.
(iv) Minor’s position is limited only to the benefits of partnership.
(v) If a minor is made full fledge partner under the terms of a partnership deed, the deed would be invalid.
5. Position of minor:
(I) Position of minor during minority:
Position of minor during minority is as under.
(i) Right of sharing profit:
He has a right to receive his agreed profit of the firm.
(ii) Inspection of accounts:
He can inspect and take copies of the accounts of the firm.
(iii) Can not conduct business:
A minor can not take part in the management of the business.
(iv) Can not be declared insolvent:
A minor can not be declared insolvent.
(v) Not liable for the acts of firm:
A minor liability is limited and is not liable for the acts of firm.
(vi) Filing suit:
He has right to sue the other partners for his shares in profits or property of the firm when he breaks his relation with the firm.
(II) Position on attaining majority:
On attaining majority he must decide with in six months whether he shall continue in the firm or leave it. He should give public notice about his decision. If he fails to do so, will be considered a major partner.
(a) In case of becoming a partner:
If minor become partner his positions will be as under:
(i) His rights and liabilities will be similar to those of a full fledged partner.
(ii) He becomes personal liable to third parties for the debt and obligations of the firm.
(iii) His share of profits and property remains the same unless altered by agreement.
(b) In case of not becoming partner:
His position will be as under:-
(i) His rights and liabilities continue to “be those of a minor up to the date of giving public notice.
(ii) He is not liable for the acts of firm done after the date of public notice.
(iii) He is entitled to sue the partners for his share of profit in the firm.
6. Disabilities of minor in a firm:
Generally disabilities of minor in a firm are as under:
(i) He may not be a partner.
(ii) He may not sue the partner for accounts, save when serves his connection with the firm.
7. Conclusion:
To conclusion it can be said that, A minor can be admitted into the benefits of existing firm with the all others members. There can be no partnership of minor with one adult member. There must be at least two major partners before a minor is admitted for the benefits of the firm.

  Position of minor in a firm.doc (Size: 29.5 KB / Downloads: 664) ]]> Position of minor in a firm Q. Can a minor become a partner in a firm? Discuss the rights and liabilities of a minor admitted to the benefit of a partnership.
1. Introduction:
A minor is not competent to contract so he cannot enter into a contract. Under partnership act a minor may be admitted to partnership with the consent of all other partners.
According to Sec. 3(i)
“Every partner has a right to prevent the introduction of a partner unless he consents to that.”
2. Definition of minor:
“A minor is a person who has not completed 18 year of age”.
3. Law regarding minor of becoming partner of firm:
According to Sec. 30
“A person who is a minor according to the law which he is subject, may not be a partner in a firm, but with the consent of all partners for the time being, he may be admitted to the benefits of partnership.”
Case law
P. L. D 1955 Lah. 350
It was held that under contract act a minor is incapable of entering into any contract thus a minor can not be partner in a firm but he can only be admitted to the benefit of partnership.
4. Important rules:
(i) There must be a partnership in existence before a minor can be admitted to its benefit.
(ii) Consent of all partners is necessary.
(iii) There can not be a partnership consisting of all minors.
(iv) Minor’s position is limited only to the benefits of partnership.
(v) If a minor is made full fledge partner under the terms of a partnership deed, the deed would be invalid.
5. Position of minor:
(I) Position of minor during minority:
Position of minor during minority is as under.
(i) Right of sharing profit:
He has a right to receive his agreed profit of the firm.
(ii) Inspection of accounts:
He can inspect and take copies of the accounts of the firm.
(iii) Can not conduct business:
A minor can not take part in the management of the business.
(iv) Can not be declared insolvent:
A minor can not be declared insolvent.
(v) Not liable for the acts of firm:
A minor liability is limited and is not liable for the acts of firm.
(vi) Filing suit:
He has right to sue the other partners for his shares in profits or property of the firm when he breaks his relation with the firm.
(II) Position on attaining majority:
On attaining majority he must decide with in six months whether he shall continue in the firm or leave it. He should give public notice about his decision. If he fails to do so, will be considered a major partner.
(a) In case of becoming a partner:
If minor become partner his positions will be as under:
(i) His rights and liabilities will be similar to those of a full fledged partner.
(ii) He becomes personal liable to third parties for the debt and obligations of the firm.
(iii) His share of profits and property remains the same unless altered by agreement.
(b) In case of not becoming partner:
His position will be as under:-
(i) His rights and liabilities continue to “be those of a minor up to the date of giving public notice.
(ii) He is not liable for the acts of firm done after the date of public notice.
(iii) He is entitled to sue the partners for his share of profit in the firm.
6. Disabilities of minor in a firm:
Generally disabilities of minor in a firm are as under:
(i) He may not be a partner.
(ii) He may not sue the partner for accounts, save when serves his connection with the firm.
7. Conclusion:
To conclusion it can be said that, A minor can be admitted into the benefits of existing firm with the all others members. There can be no partnership of minor with one adult member. There must be at least two major partners before a minor is admitted for the benefits of the firm.

  Position of minor in a firm.doc (Size: 29.5 KB / Downloads: 664) ]]> https://vuhelp.net/Thread-What-are-contents-of-application-for-registration-of-a-firm Wed, 30 Nov 2011 06:01:54 -0500 Xpert]]> https://vuhelp.net/Thread-What-are-contents-of-application-for-registration-of-a-firm

Registrations of a firm

Q. What are contents of application for registration of a firm? What are the effects of non-registration.
1. Introduction:
The person who have entered into a partnership with one another are called collectively a firm. So a firm is collective name of the individual forming it. The registration of firm is optional. It does not create partnership rather it is evidence of existence of partnership.
2. Registration of a firm:
The registration of a firm is not compulsory. It is better to register it as soon as it is formed. There is no penalty for non registration.
3. Procedure of registration of firm:
The procedure is as under.
(I) Application:
For the registration of a firm application in the prescribed form is filed.
(II) Prescribed fee:
Prescribed fee is paid along with application.
(III) Where application is filed:
Application for the registration of firm is filed in the office of registrar.
(IV) Time of registration:
Firm can be registered at any time.
(V) Modes of filing application:
Application can be filed through:
(i) By post
(ii) By hand
(VI) Contents of application:
Following are the contracts of application.
(a) Name of firm:
The partners can choose any name according to the following rules.
(i) The name must not be identical or similar to the name of existing firm.
(ii) The name must not contain words government, Jinnah, Quaid-e-Azam, or words showing the approval or patronage of the federal government or any provincial government, without the consent of provincial Govt.
(iii) A firm name must not contain, the name of ‘united nations’ or abbreviations of its subsidiary body without the sanction of secretary general of U. N.
(iv) A firm name must not contain the name of the “world health organization or its abbreviations without the sanction of the director general of who.
(v) A firm must not contain any word, which may be declared by the provincial government as undesirable.
(b) Business place:
It shall contain name of business place.
© Other places:
The names of other places where the carries on business.
(d) Date of joining of partner:
The application shall contain the date of joining the firm.
(e) Names and addresses of partners:
The names and addresses of the partners firm.
(f) Duration of firm:
The duration of firm if any.
(g) Signature:
The application shall contains the signature of all the partners.
(h) Verification:
Every partner shall verify the application.
(VII) Satisfaction of registrar:
The register will examine the application and satisfy about the particulars application.
(VIII) Certificate of registration:
After examination if the registrar is satisfied he will register the firm and issue certificate of the registration of a firm.
(IX) Change of particulars:
If any change takes place in the particulars, registrar will be informed.
(X) Penalty for false particulars:
A person; who provides false information to the registrar, shall be punishable with imprisonment, which may extends to three months, or with fine or with both.
4. Effect of non-registration:
Following are the effect of non-registration of a firm.
(I) Suit by partner:
A partner of unregistered firm cannot sue the firm or any of the present or past co-partners for the enforcement of any right.
(II) Suit by firm:
An un-registered firm can not file a suit against the third party for the enforcement of any right.
(III) Suit by third party:
A third party can file a suit against the firm or it’s partner to enforce his rights.
(IV) No right of set off:
An un-registered firm or partner can not claim a right of set off in proceedings instituted against third party.
Exceptions:
Non-registration does not effect the following.
(i) Unregistered firm and it partner can sue for the dissolution of the firm.
( ii) The third party can always sue whether registered or not.
(iii) The partner can sue for the accounts of dissolved firm.
(iv) The partners can sue for the realization of the property of a dissolved firm.
(v) The dissolved firm can sue to recover damages for breach of contract.
(vi) The partner can refer a dispute to arbitrator.
(vii) The receiver of an insolvent partner can sue for the realization of insolvent’s share.
5. Case law
1994 MLD 274
It was held that partnership act dose not make registration of a firm compulsory partner can enter into partnership either in writing or orally or get the firm registered. The effect non-registration of a firm would suffer from legal disability in filing suits against parties and as against one another under partnership act.
6. Importance and advantages of the registration of a firm:
(i) Concession in income tax by tax authorities.
(ii) Settlement of disputed.
(iii) Protection of the right of the partners.
(iv) The firm can use trade mark.
(v ) Firm can files suit against third party.
7. Object:
The object of registration from is to protect the rights of third party.
8. Conclusion:
To conclusion it can be said that, partnership of a firm is not compulsory. It is only proof a existence of the firm. The procedure of the registration of a firm is very simple. The effect of non-registration of a firm with the register of firm would be that the partnership and its partner would suffer from legal disability in filing suit against any partner and as against one another.

  Registrations of a firm.doc (Size: 33 KB / Downloads: 460) ]]>

Registrations of a firm

Q. What are contents of application for registration of a firm? What are the effects of non-registration.
1. Introduction:
The person who have entered into a partnership with one another are called collectively a firm. So a firm is collective name of the individual forming it. The registration of firm is optional. It does not create partnership rather it is evidence of existence of partnership.
2. Registration of a firm:
The registration of a firm is not compulsory. It is better to register it as soon as it is formed. There is no penalty for non registration.
3. Procedure of registration of firm:
The procedure is as under.
(I) Application:
For the registration of a firm application in the prescribed form is filed.
(II) Prescribed fee:
Prescribed fee is paid along with application.
(III) Where application is filed:
Application for the registration of firm is filed in the office of registrar.
(IV) Time of registration:
Firm can be registered at any time.
(V) Modes of filing application:
Application can be filed through:
(i) By post
(ii) By hand
(VI) Contents of application:
Following are the contracts of application.
(a) Name of firm:
The partners can choose any name according to the following rules.
(i) The name must not be identical or similar to the name of existing firm.
(ii) The name must not contain words government, Jinnah, Quaid-e-Azam, or words showing the approval or patronage of the federal government or any provincial government, without the consent of provincial Govt.
(iii) A firm name must not contain, the name of ‘united nations’ or abbreviations of its subsidiary body without the sanction of secretary general of U. N.
(iv) A firm name must not contain the name of the “world health organization or its abbreviations without the sanction of the director general of who.
(v) A firm must not contain any word, which may be declared by the provincial government as undesirable.
(b) Business place:
It shall contain name of business place.
© Other places:
The names of other places where the carries on business.
(d) Date of joining of partner:
The application shall contain the date of joining the firm.
(e) Names and addresses of partners:
The names and addresses of the partners firm.
(f) Duration of firm:
The duration of firm if any.
(g) Signature:
The application shall contains the signature of all the partners.
(h) Verification:
Every partner shall verify the application.
(VII) Satisfaction of registrar:
The register will examine the application and satisfy about the particulars application.
(VIII) Certificate of registration:
After examination if the registrar is satisfied he will register the firm and issue certificate of the registration of a firm.
(IX) Change of particulars:
If any change takes place in the particulars, registrar will be informed.
(X) Penalty for false particulars:
A person; who provides false information to the registrar, shall be punishable with imprisonment, which may extends to three months, or with fine or with both.
4. Effect of non-registration:
Following are the effect of non-registration of a firm.
(I) Suit by partner:
A partner of unregistered firm cannot sue the firm or any of the present or past co-partners for the enforcement of any right.
(II) Suit by firm:
An un-registered firm can not file a suit against the third party for the enforcement of any right.
(III) Suit by third party:
A third party can file a suit against the firm or it’s partner to enforce his rights.
(IV) No right of set off:
An un-registered firm or partner can not claim a right of set off in proceedings instituted against third party.
Exceptions:
Non-registration does not effect the following.
(i) Unregistered firm and it partner can sue for the dissolution of the firm.
( ii) The third party can always sue whether registered or not.
(iii) The partner can sue for the accounts of dissolved firm.
(iv) The partners can sue for the realization of the property of a dissolved firm.
(v) The dissolved firm can sue to recover damages for breach of contract.
(vi) The partner can refer a dispute to arbitrator.
(vii) The receiver of an insolvent partner can sue for the realization of insolvent’s share.
5. Case law
1994 MLD 274
It was held that partnership act dose not make registration of a firm compulsory partner can enter into partnership either in writing or orally or get the firm registered. The effect non-registration of a firm would suffer from legal disability in filing suits against parties and as against one another under partnership act.
6. Importance and advantages of the registration of a firm:
(i) Concession in income tax by tax authorities.
(ii) Settlement of disputed.
(iii) Protection of the right of the partners.
(iv) The firm can use trade mark.
(v ) Firm can files suit against third party.
7. Object:
The object of registration from is to protect the rights of third party.
8. Conclusion:
To conclusion it can be said that, partnership of a firm is not compulsory. It is only proof a existence of the firm. The procedure of the registration of a firm is very simple. The effect of non-registration of a firm with the register of firm would be that the partnership and its partner would suffer from legal disability in filing suit against any partner and as against one another.

  Registrations of a firm.doc (Size: 33 KB / Downloads: 460) ]]> https://vuhelp.net/Thread-What-are-the-right-and-duties-of-partner-under-partnership-act-1932 Wed, 30 Nov 2011 05:58:00 -0500 Xpert]]> https://vuhelp.net/Thread-What-are-the-right-and-duties-of-partner-under-partnership-act-1932 Right and duties of partner
Q. What are the right and duties of partner under partnership act 1932.
1. Introduction:
Partnership is the relation between persons who have agreed to share the profit of business carried on by all or any of them acting for all. The person who have entered into partnership with one another are called partner. The rights and duties of partner. The rights and duties of partners are determined in accordance with the agreement of the firm, are agent as well as principals.
2. Partner:
The person who enters into partnership trough agreement is known as partner. He has agreed to divide profit and share in loss.
3. Kinds of partner:
Following are kinds of partner:
(i) Active partner
(ii) Silent partner
(iii) Partner in profit
(iv) Secret partner
(v) Nominal partner
(vi) Sub-partner
(vii) Partner by estoppels
(viii) Junior partner
(ix) Senior partner
(x) Minor partner
(xi) Partner with limited liability
(xii) Partner with unlimited liability
4. Rights of partner:
Following are the rights of a partner.
(I) Right to manage the business:
Every partner has right to take part in the management of business.
(II) Right to express opinions:
Every partner has right to express his opinions relation to business matters.
(III) Right to access the accounts books.
Every partner has right to access the account books of firm.
(IV) Right to share the profit:
Every partner has right to share the profit of the business.
(V) Right to interest on capital:
Every partner can charge interest on capital contributed by him.
(VI) Right to interest on advances:
Every partner has right to interest on advances at the of 6% per annum.
(VII) Right to be indemnified:
Every partner has right to be indemnified by the firm in respect of payment by him.
Case law
P. L. D 1958 Kar 251
Any partner obtaining credit on his own behalf can not bind other partners and they are not liable.
(VIII) Partner’s authority in emergency:
Partner has right to act in emergency to protect the firm from loss.
Conditions
(i) There must be an emergency.
(ii) The act must be done for the purpose of protecting the firm from loss.
(iii) The act must be such as a person of ordinary prudence, would have done in his own case acting under similar circumstances.
(IX) Right to give consent for new partner:
Every partner has right to prevent the introduction of a new partner unless he consents to that.
(X) Right to retire:
Every partner has right to retire from the firm.
(XI) Right not to be expelled:
A partner can not be expelled from firm by any majority of partners provided the decision is made in good faith and there is a provision in contract.
(XII) Right to carry on competing business:
Every out going partner has a right to carry on a business similar to that of the firm subject to certain restrictions.
(XIII) Right of dissolution of firm:
Every partner has right to file suit for dissolution of firm.
(XIV) Right to restrain from use of firm name or firm property:
Every partner has the right to see that the property of the firm is used only for the purpose of partnership.
(XV) Right of the partner who leaves the firm due to any reason is entitled to claim any share according to the agreement.
5. Duties of partner:
Following are the duties of a partner.
(I) Duty to carry on business:
Every partner is bound to carry on the business of the firm to common advantage.
(II) Duty to maintain true accounts:
Every partner must render true and proper account to his co-partner.
(III) Duty to keep secrecy:
It is duty of every partner that he should maintain the secrecy for the business.
(IV) Duty to provide information:
Every partner should provide all the necessary information about the business to co-partners.
(V) Duty to compensate:
It is duty of every partner to compensate any loss incurred by him.
(VI) Duty to abide by the decisions:
Every partner should abide by the decision taken by the majority of the partners.
(VII) Duty to share the loss:
Every partner shall bear the loss equally borne by the firm irrespective of their capital contribution.
(VIII) Duty not to use firm property for his own.
It is the duty of every partner of the firm to hold and use the property of the firm only for the purpose of business.
(IX) Sincere and faithful:
Every partner should be just and faithful to the other partners.
(X) Duty to indemnify for willful neglect:
Every partner shall indemnify the firm for any loss caused to it by his willful neglect in the conducted of business of firm.
(XI) Duty not to carry other business.
It is the duty of a partner not to carry other business.
(XII) Duty to pay profit to firm:
If a partner earns profit from any source of the firm it should be paid to firm.
(XIII) Duty to be liable jointly and severally:
Every partner is liable jointly and severally for all the acts of the firm.
(XIV) Duty not to transfer his rights:
A partner cannot transfer his rights and interest in the firm to an outsider to make him partner in the business without the consent of others partners.
6. Conclusion:
To conclusion it can be said that, partner is a person who has agreed to share the profit of the business. Each partner acts as an agent of the other partner of the firm. Every partner has right and duties under the agreement made by them.

  Right and duties of partner.doc (Size: 31.5 KB / Downloads: 521) ]]> Right and duties of partner
Q. What are the right and duties of partner under partnership act 1932.
1. Introduction:
Partnership is the relation between persons who have agreed to share the profit of business carried on by all or any of them acting for all. The person who have entered into partnership with one another are called partner. The rights and duties of partner. The rights and duties of partners are determined in accordance with the agreement of the firm, are agent as well as principals.
2. Partner:
The person who enters into partnership trough agreement is known as partner. He has agreed to divide profit and share in loss.
3. Kinds of partner:
Following are kinds of partner:
(i) Active partner
(ii) Silent partner
(iii) Partner in profit
(iv) Secret partner
(v) Nominal partner
(vi) Sub-partner
(vii) Partner by estoppels
(viii) Junior partner
(ix) Senior partner
(x) Minor partner
(xi) Partner with limited liability
(xii) Partner with unlimited liability
4. Rights of partner:
Following are the rights of a partner.
(I) Right to manage the business:
Every partner has right to take part in the management of business.
(II) Right to express opinions:
Every partner has right to express his opinions relation to business matters.
(III) Right to access the accounts books.
Every partner has right to access the account books of firm.
(IV) Right to share the profit:
Every partner has right to share the profit of the business.
(V) Right to interest on capital:
Every partner can charge interest on capital contributed by him.
(VI) Right to interest on advances:
Every partner has right to interest on advances at the of 6% per annum.
(VII) Right to be indemnified:
Every partner has right to be indemnified by the firm in respect of payment by him.
Case law
P. L. D 1958 Kar 251
Any partner obtaining credit on his own behalf can not bind other partners and they are not liable.
(VIII) Partner’s authority in emergency:
Partner has right to act in emergency to protect the firm from loss.
Conditions
(i) There must be an emergency.
(ii) The act must be done for the purpose of protecting the firm from loss.
(iii) The act must be such as a person of ordinary prudence, would have done in his own case acting under similar circumstances.
(IX) Right to give consent for new partner:
Every partner has right to prevent the introduction of a new partner unless he consents to that.
(X) Right to retire:
Every partner has right to retire from the firm.
(XI) Right not to be expelled:
A partner can not be expelled from firm by any majority of partners provided the decision is made in good faith and there is a provision in contract.
(XII) Right to carry on competing business:
Every out going partner has a right to carry on a business similar to that of the firm subject to certain restrictions.
(XIII) Right of dissolution of firm:
Every partner has right to file suit for dissolution of firm.
(XIV) Right to restrain from use of firm name or firm property:
Every partner has the right to see that the property of the firm is used only for the purpose of partnership.
(XV) Right of the partner who leaves the firm due to any reason is entitled to claim any share according to the agreement.
5. Duties of partner:
Following are the duties of a partner.
(I) Duty to carry on business:
Every partner is bound to carry on the business of the firm to common advantage.
(II) Duty to maintain true accounts:
Every partner must render true and proper account to his co-partner.
(III) Duty to keep secrecy:
It is duty of every partner that he should maintain the secrecy for the business.
(IV) Duty to provide information:
Every partner should provide all the necessary information about the business to co-partners.
(V) Duty to compensate:
It is duty of every partner to compensate any loss incurred by him.
(VI) Duty to abide by the decisions:
Every partner should abide by the decision taken by the majority of the partners.
(VII) Duty to share the loss:
Every partner shall bear the loss equally borne by the firm irrespective of their capital contribution.
(VIII) Duty not to use firm property for his own.
It is the duty of every partner of the firm to hold and use the property of the firm only for the purpose of business.
(IX) Sincere and faithful:
Every partner should be just and faithful to the other partners.
(X) Duty to indemnify for willful neglect:
Every partner shall indemnify the firm for any loss caused to it by his willful neglect in the conducted of business of firm.
(XI) Duty not to carry other business.
It is the duty of a partner not to carry other business.
(XII) Duty to pay profit to firm:
If a partner earns profit from any source of the firm it should be paid to firm.
(XIII) Duty to be liable jointly and severally:
Every partner is liable jointly and severally for all the acts of the firm.
(XIV) Duty not to transfer his rights:
A partner cannot transfer his rights and interest in the firm to an outsider to make him partner in the business without the consent of others partners.
6. Conclusion:
To conclusion it can be said that, partner is a person who has agreed to share the profit of the business. Each partner acts as an agent of the other partner of the firm. Every partner has right and duties under the agreement made by them.

  Right and duties of partner.doc (Size: 31.5 KB / Downloads: 521) ]]> https://vuhelp.net/Thread-State-the-grounds-on-which-the-court-may-dissolve-a-partnership-firm-at-the-suit Wed, 30 Nov 2011 05:52:57 -0500 Xpert]]> https://vuhelp.net/Thread-State-the-grounds-on-which-the-court-may-dissolve-a-partnership-firm-at-the-suit

Dissolution of firm

Q. State the grounds on which the court may dissolve a partnership firm at the suit of a partner.
Q. What are the various modes of dissolution of partnership? Discuss in detail the ground on which court may dissolve firm.
1. Introduction:
The partnership can be dissolved easily by mutual consent of the partners. Formal document are not required for this purpose. Dissolution of firm, includes the dissolution of partnership but the dissolution of the partnership may or may not include the dissolution of the firm.
2. Meaning of dissolution:
Dissolution of the firm means end of the firm.
3. Grounds of dissolution of firm:
Following are the grounds of dissolution of a firm.
(I) Dissolution by agreement:
A firm may be dissolved with the consent of all the partners. The consent of majority is not enough to dissolve a partnership firm.
(II) Compulsory dissolution:
A firm is dissolved:
(i) When all partners are declared insolvent.
(ii) When all except one of the partners are declared insolvent,
(iii) When the business carried on by the firm becomes un-lawful.
(III) Contingent dissolution:
Subject to the contract between the partners a firm is dissolved:
(i) If constituted for a fixed term, by the expiry of that term.
(ii) On the completion of the object for which the firm was formed.
(iii) On the death of a partner.
(iv) On the insolvency of a partner.
(v) On the resignation of a partner.
(IV) Dissolution by notice:
(a) Where the partnership is at will, the firm may be dissolved by any partner by giving notice in writing to all the other partner of his intention to dissolve the, firm.
(b) The firm is dissolved as form the dissolution or if no date is mentioned, as from the date of communication of his notice.
Case law
1985 CLC 2836
It was held that one of the partner can sign and verify a plaint on behalf of the firm dissolution of the firm, in a suit for the purpose of its winding up.
(V) Dissolution by the court:
According to Sec. 44 court can dissolve on the following grounds.
(a) Unsoundness of mind:
If a partner has become of unsound mind, the court may dissolve the firm.
(b) Permanent incapability:
If a partner other than the partner suing, has become in any way permanently incapable of performing his duties as a partner.
© Misconduct:
When a partner except the partner suing is guilty of misconduct, which may affect the reputation of the firm.
(d) Breach of agreement:
If a partner commits breach of agreement relation to the management of the affairs of the firm or the conduct of the business the court may order for the dissolution of the firm.
(e) Transfer of interest:
When a partner, except the partner suing, has transferred the whole of his interest in the firm to a third party without the consent of the other party.
(f) Just and equitable cause:
When on any other ground the court considers it just and equitable that the firm should be dissolved the court may order for the dissolution of the firm.
4. Conclusion:
To conclusion it can be that, dissolution of firm is end of firm under partnership act. There are five modes of dissolution of firm. Dissolution of firm may not necessarily mean dissolution of partnership as in the case of dissolution of partnership, the firm may continue with some of the remaining partner.

  Dissolution of firm.doc (Size: 29 KB / Downloads: 890) ]]>

Dissolution of firm

Q. State the grounds on which the court may dissolve a partnership firm at the suit of a partner.
Q. What are the various modes of dissolution of partnership? Discuss in detail the ground on which court may dissolve firm.
1. Introduction:
The partnership can be dissolved easily by mutual consent of the partners. Formal document are not required for this purpose. Dissolution of firm, includes the dissolution of partnership but the dissolution of the partnership may or may not include the dissolution of the firm.
2. Meaning of dissolution:
Dissolution of the firm means end of the firm.
3. Grounds of dissolution of firm:
Following are the grounds of dissolution of a firm.
(I) Dissolution by agreement:
A firm may be dissolved with the consent of all the partners. The consent of majority is not enough to dissolve a partnership firm.
(II) Compulsory dissolution:
A firm is dissolved:
(i) When all partners are declared insolvent.
(ii) When all except one of the partners are declared insolvent,
(iii) When the business carried on by the firm becomes un-lawful.
(III) Contingent dissolution:
Subject to the contract between the partners a firm is dissolved:
(i) If constituted for a fixed term, by the expiry of that term.
(ii) On the completion of the object for which the firm was formed.
(iii) On the death of a partner.
(iv) On the insolvency of a partner.
(v) On the resignation of a partner.
(IV) Dissolution by notice:
(a) Where the partnership is at will, the firm may be dissolved by any partner by giving notice in writing to all the other partner of his intention to dissolve the, firm.
(b) The firm is dissolved as form the dissolution or if no date is mentioned, as from the date of communication of his notice.
Case law
1985 CLC 2836
It was held that one of the partner can sign and verify a plaint on behalf of the firm dissolution of the firm, in a suit for the purpose of its winding up.
(V) Dissolution by the court:
According to Sec. 44 court can dissolve on the following grounds.
(a) Unsoundness of mind:
If a partner has become of unsound mind, the court may dissolve the firm.
(b) Permanent incapability:
If a partner other than the partner suing, has become in any way permanently incapable of performing his duties as a partner.
© Misconduct:
When a partner except the partner suing is guilty of misconduct, which may affect the reputation of the firm.
(d) Breach of agreement:
If a partner commits breach of agreement relation to the management of the affairs of the firm or the conduct of the business the court may order for the dissolution of the firm.
(e) Transfer of interest:
When a partner, except the partner suing, has transferred the whole of his interest in the firm to a third party without the consent of the other party.
(f) Just and equitable cause:
When on any other ground the court considers it just and equitable that the firm should be dissolved the court may order for the dissolution of the firm.
4. Conclusion:
To conclusion it can be that, dissolution of firm is end of firm under partnership act. There are five modes of dissolution of firm. Dissolution of firm may not necessarily mean dissolution of partnership as in the case of dissolution of partnership, the firm may continue with some of the remaining partner.

  Dissolution of firm.doc (Size: 29 KB / Downloads: 890) ]]>