CPT Chapter General Nature of Partnership

With Bharat Galani.Duration:4hrs 10min

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Notes

General Nature of Partnership

Index

What is Partnership?
Features of Partnership
True Test of Partnership
Partnership vs Other Organisation
Who can become a partner in a firm
Types of Partnership
Types of Partners
Minor’s position in Partnership

Definition

(Section 4)
“Partnership is the relation between persons who have agreed to share the profits of a business carried on by allor any one of them acting for all”

Features of Partnership

At least 2 persons
Agreement
Existence of business
Sharing of Profits
Mutual Agency

Partners as agent of a firm

Mutual agency- Cardinal Principle / True test
Partner is Both principal & agent- not mere agent
Partner has Capacity to bind other partners by his act
Only for acts done related to business

Other forms of Organisation

Company
HUF
Co Ownership
Club
Association
Joint Venture

Types of Partners

Active /Working/Ostensible
Sleeping/Passive/Dormant
Nominal
Partner in Profit Only
Sub Partner
Partner by Holding out
Partner by Estoppel
Secret Partner
Minor Partner

Partnership by Holding out

Someone holds out as partner
Represents himself or permits himself to be represented as a partner
(though he is not a partner)
Liable like a partner
Only the person to whom representation has been made – Enforce Liability
Fraudulent intention is not relevant

CPT Exam Exposure

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Relationship of Partners

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