Formation of Partnership business

7/28/2019 Formation of Partnership business

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Group Members :

Israt Islam Tanisha 114 101 015

Nusrat Islam Esha 114 101 016

Md. Julhash Hossain

111 102 061

Nazneen Naher 111 101 033

Kazi Sabrina Samanta 111 101 138

Barnali Chowdhury 111 101 160


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Nature of Partnership

Partnership

Essential Elements Voluntary Agreement

Sharing of Profit of a Business

Mutual Agency

Capacity of a partner


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Classes of

Partners:

Active Partner

Sleeping orNominal Partner

Sub-Partners

Classes of

Partnership:

Partnership-at-will

ParticularPartnership-

Joint Venture

LimitedPartnership


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The legal status of a firm

Name of Firm

The Partnership Agreement:

oral

Written-Deed of Partnership/Articles ofPartnership


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Registration of Firm

Procedure of Registration-

The name of the firm The principal place of business of the firm.

Names of other places where the firm'sbusiness is carried on.

Names and permanent addresses of thepartners

Duration of partnership, if any.


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Consequences of Non-Registration:

Cannot enforce its claims against a third party

Cannot claim adjustment for any sum exceeding Rs.

100

Cannot file a legal suit against any of its partners.

Partners of an unregistered firm cannot file any suit

to enforce a right against the firm


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Exception: Right to sue for the dissolution of the firm or to

realize the property of a dissolved firm

Any suit or set off in which the claim does not

exceed Rs.100

The right of a third party to sue the unregistered

firm or its partners.


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Relation between partners:Basically there two ground duties of partners-

General duties

Duty to indemnify for loss caused by fraud

Rules regarding the conduct of the business-

Every partner has a right to take part in the conduct of the

business and is bound to attend his duties in the conduct

of the business


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Mutual rights and liabilities No remuneration for taking part in the conduct of the

business.

share equally in the profits earned

contribute equally to the losses

interest shall be payable only out of profits


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Rights and Duties of Partners taking part in the conduct of the business

expressing opinion in different matters

having free access to all the records

sharing in the profits of the business

getting interest on the payment of advance


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Continues

partner shall not obtain a private advantage at the

expense of the firm;

Maintaining mutual trust and confidence of each

partner

Sharing true accounts and full information of all

things Not to carry on business competing with the firm

Carrying out the duties created by the contract


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Dissolution of PartnershipThe Grounds of Dissolution-

By agreement

Compulsory dissolution

On the happening of certain contingencies

By notice

Dissolution by the court


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The Consequences of Dissolution

Acts done after dissolution

Windings up

Continuing Authority of partners for purpose of winding

up

Personal profit earned after dissolution

Return of premium

Recession for fraud and misrepresentation

Agreements in restraint of trade


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Settling accounts upon dissolution

All the liabilities should have to be pay before

desolation of the firm

The sums of the amount contributed by the partners

will be used in paying third parties due

In case of one partners insolvency loose the right over

firm assets.

Payment of the firm debts and of Separate Debt


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Documents

Formation of Partnership business