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Discharge of Contracts & Remedies

Partnership - 1

Lecture # 9

Partnership

Partnership Act 1932

Partnership Deed

Law of Partnership

Partners

Partnership

Firm

Registration of Firms

• The Name of the Firm– District

Registration of Firms

• Principal place of Business– Head Office

Registration of Firms

• Other Places, where Firm carries on Business– Pakistan (may be)

Registration of Firms

• Joining date of partners to Firms– Same date or any other

Registration of Firms

• Name & Addresses of Partners– Name– Father/ Husband Name– Present Address– Permanent Address– CNIC No

Registration of Firms

• Duration of Firm– Specific Date– Completion of Undertaking– End of Some Event

Effect of Non Registration

• Such Firm cannot file a suit

Effect of Non Registration

• Any Person cannot file a suit against such Firm

Effect of Non Registration

• Partner cannot enforce his rights against the such Firm

Penalty for a False Statement

• Fine

• Imprisonment for 3 months

• Both

Definition and Nature of Partnership

• Association of Two or More Persons

• Agreement

• Business

• Carry on by all or least one

• Sharing Profit

Classes of Partners

• Active Partner– An invested person who is involved in the daily

operations of the partnership. An active partner helps run the business to enhance his or her returns and is therefore considered a material participant. This person typically shares more risk and return versus a limited or silent partner.

Classes of Partners

• Partner by Estoppel or Holding out– Partner by estoppel -The person who falsely

represents himself as a partner is known as partner by estoppel. If a person falsely represents himself as a partner of any firm or behaves in a way that somebody can have an impression that such person is a partner and on the basis of this impression transacts with that firm then that person is held liable to the third party.

– Partner by Holding out – if the firm declare that the Partner by estoppel is indeed a partner & such partner remains quite

Classes of Partners

• Dormant or Sleeping Partner

Classes of Partners

• Nominal Partner– Not entitle of Profit

Classes of Partners

• Partner in Profits Only

Classes of Partners

• Working Partner– Special Qualification

Classes of Partners

• Sub Partner– One Partner share his Profit

Classes of Partners

• Incoming Partner• Retired or Outgoing Partner

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Law of Partnership - 2