Partnership Act (1932)

A group of individuals may enter into partnerships in order to carry on a business. The partnership’s rights and obligation are based on the agreements between the partners and the Partnership Act of 1932.

Key Elements:

• Partnership is the relationship between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. The individual members are partners, and collectively they form a firm;
• A partner is an agent for the firm in relation to the business of the firm;
• A person joins the partnership only with the consent of all the partners unless they have by contract adopted a different rule; he does not become liable for acts done before the date of his admission to partnership;
• A firm may be dissolved by the partners in various circumstances, or by the court;
• Partnership is a highly complex legal structure, and that the problems which arise are many and varied.