Standard format. Designed for friends. Favours equally. Experience the power of togetherness. Check how to create founder and partnership agreements.
Well defined relationship for long lasting partnership. Work in tandem. Make 1 + 1 = 11.
A 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 or all. In India it is governed by the Indian Partnership Act, 1932, which extends to the whole of India except the State of Jammu and Kashmir. It came into force on 1st October 1932.
A partnership and founder agreements can be entered into between persons who are competent to contract. Every person who is of the age of majority according to the law to which he is subject. Sound mind person and is not disqualified from contracting by any law. And he can enter into a partnership according to his subject.
Partners are bound to carry on the business of the firm to the greatest common advantage, to be just and faithful to each other. To render true accounts and full information of all things affecting the firm to any partner or his legal representative. Each partner is in contemplation of law, the general agent of the partnership. He may buy or sale the goods on account of partnership, contract debts, pay debts, draw, make, endorse bills of exchange, cheque etc.
When a partner in a firm is adjudicated an insolvent. He ceases to be a partner on the date on which the date of adjudication is made, whether or not the firm is thereby dissolved.
A deed of partnership, or of dissolution of partnership, must be executed and attested as a bond. Its registration is no compulsory. But where a deed of dissolution of a firm involves transfer of immovable property worth of Rs. 100 or upwards. The deed is compulsorily registerable.
The following can enter into a partnership
The number of partners in a firm shall not exceed 20 and a partnership having more than 20 persons is illegal. When there is partnership between two firms, all the partners of each firm will be taken into account. If the partnership is between the karta or member of Hindu undivided family. The members of the joint Hindu family will not be taken into account.
Essentials of a Partnership