Partnership
The Indian Partnership Act enacted in the Year 1932 defining the law relating to partnership the relation between the persons who have agreed to share the profits of a business carried on by all or any of them acting for all -- makes it obligatory to have a partnership registered with the Registrar of Firms, failing which the firm is prohibited from enforcing any right in a Court of Law. This Act defines the relationship of partners to one another and to third parties and lays down provisions as regards incoming and outgoing partners, dissolution of a firm, etc. Under the Act partners are bound to carry on the business of the firm to the greatest common advantage, to be just and faithful to each other and to render true accounts and full information of all things effecting the firm to any partner or its legal representative. A partner is liable to indemnify the firm for any loss caused to it by his willful neglect in the conduct of the business of the firm. A partner is the agent of the firm for the purpose of the business of the firm. The act also provides for the sale of goodwill of the firm after its dissolution and the rights of the buyer and seller of the goodwill.
