Tally
coaching
CA Classes

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Partnership at will

This query is : Resolved 

IF A PARTICULAR PARTNERSHIP ENDS AFTER A PARTICULAR ADVENTURE BUT THE PARTNERS CONTINUE IT AFTER COMPLETEION OF BUSINESS , THEN WOULDN'T IT BE BREACH OF CONTRACT BECAUSE THEY HAD MADE AN AGREEMENT TO CARRY ON BUSINESS FOR A PARTICUALR ADVENTURE OR BUSINESS , BUT SINCE THEY CONTINUE TO DO BUSINESS, IT IS CLEAR BREACH OF THAT CONTRACT

If all partners agree and carry the business, it will not be considered as breach, unless someone raises the issue.

So sir partners have to make changes in contract fo this purpose then

No written contract is needed.
With the consent may be not in writing of all the partners they carry on the business it's valid.

SIR FOR EG THERE IS A PARTNERSHIP FIRM OF SUGAR MANUFACTURING AND TRADING.. THREE PARTNERS ARE THERE I.E. A,B,C. B's IMPLIED AUTHORITY IS RESTRICTED AS TO HE CANNOT PURCHASE SUGARCANE FOR WORTH MORE THAN 10,000. HE GOES AND BUYS SUGARCANE FROM OUTSIDER WHO DOESN'T KNOW ABOUT THIS RESTRICTION WORTH 20,000. HERE ACCORDING TO SECION 20 OF THE INDIAN PARTNERSHIP ACT, THE FIRM WILL BE LIABLE FOR THE IT.. SO WILL B REQUIRE TO INDEMNIFY THE OTHER PARTNER AS SEC10 SAYS THAT IN CASE OF FRAUD THE PARTNER HAS TO INDEMNIFY AND FRAUD INCLUDES ACTIVE CONCEALNMENT OF FACTS KNOWN....OR ANY OTHER REASON WHY B WILL HAVE TO INDEMNIFY OTHER PARRTNERS... OR B WILL NOT BE REQUIRED TO INDEMNIFY THE OTHER PARTNERS

In case of loss on such purchase B has to indemnify other partners.

So will this loos be considered as fraud due to which he is required to indemnify

Yes,.........................

sir correct me if i am wrong....the express authority of partners are bascially we can say extended or restricted implied authority of them. for eg. if there are three partners of sugar manufacturing business.. there is an implied authority that they can do everyhting like buying sugacane, borrow money and other things similar to it.. now one partner is said that he can only buy sugarcane for business (like deal in sugarcane for business)and nothing else.. now this is restrciction on implied authority but it can also be understood as express authority as by words spoken or written authority is given to the partner... sir plz reply whether i am right or worng

Yes, you are right.........

sir for eg i am a dormant partner.. will i have the right to be consulted???if yes why and if no why?? plz respond with reason??

Yes, you will be consulted, as you have invested your funds in the firm like other partners.

But sir dormant partner doesn't take part in day to day activities and and right to be consulted is for day to day activities..so if he is a dormant partner he doesn't have right to be consulted

That's based on issues.

Means could you explain

No consultation required in case of day today operations. Consultation required in case of change in business or place etc.

Sir could you plz explain sec 23 of partnership act

Sir according to contract law both parties must give something and get something.i.e. both the parties must get consideration in return..so in sale of good act consideration is money only..so what the seller will be getting will only be consideration but what the buyer will get I.e goods will not be consideration as per sales of goods act but as per contract law what buyer is getting is also consideration..and for a contract to be formed buyer also must get consideration for otherwise therexant be consideration. So if only money is consideration per SOGA 1932 THEN THERE CAN NKT BE A CONTRACT

As per contract law what buyer is getting is also consideration.
Sale of goods will fall under contract.


Sir I don't understand what our meant

1) LLP agreement can be made before and after incorporation.
if it is made before incorporation ( i know it will contain rights and duties between partners) does it contain rights and duties between llp and partner.......and if it doesn't contain, then how is it added after incoprotation by ratification or how??
and
if it is made after incorporation, does it contain right and duties between partners and benteen partners and the LLP

2)as we know that for acts out of the authority of partner and the other person knowing about those restriction, the firm will not be liable..

whose liability will be there if partner in his authority does some wrongful act or omission.

when we say fraud by partner, if it is without the knowledge or authority off LLP, LLP is not liable. what do we mean by authority and knowledge of the llp

3) at the time of incorporation of LLP is it compulsory to appoint Designated partners at that time or they cN be appointed afterwards.



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


Similar Resolved Queries

loading





Trending Tags