role of a partner in a partnership firm
PROJECT ON
Indian Partnership Act 1932: Minor as a partner in a Partnership firm
IN THE COURSE OF
CONTRACT II
SUBMITTED TO
INSTITUTE OF LAW
NIRMA UNIVERSITY
UNDER THE GUIDANCE OF
Asst. Prof. Nitesh Upadhyay
SUBMITTED BY
Saloni Palkhiwala
Roll no.: 12bblo33
Semester: IV, B.com LLb
Section C
1.INTRODUCTION
Statement of problem
According to Section 11 of The Indian Contract Act 1872 a minor cannot be a partner in a partnership firm but as per section 30 of The Indian Partnership ACT 1932 he may be admitted to the benefits of partnership and so he has a share in the profits but doesn’t have to incur any loss suffered by the firm which increases the liability of the other partners.
Review of Literature
Defining Partnership
The first codification of law of partnership in the modern form was made in the Indian Contract Act 1872( Chapter XI).This chapter consisted of 28 sections in all(sections 239 to 266) which were mainly based on English precedents. With the rapid development of commerce and trade in India those provisions felt insufficient and therefore in 1932 the Indian Partnership Act 1932 was passed substituting Chapter XI of the Indian Contract Act, 1872. This Act came in force with effect from 1st date of October,1932. According to section 1 of the said act it extends to the whole of India (except the State of Jammu and Kashmir).1 Section 4 of the Act defines partnership. 1. The analysis of the definition of partnership reveals the following essentials of Partnership.
(i) An Association of Persons
There must be a contract between two or more persons. Therefore unless there are at least two persons, there cannot be a partnership. According to section 11(1) of the Companies Act 1956 in the case of banking there cannot be more than 10 members in a partnership and in the case of any other business there cannot be more than 20 members in a partnership. If limit exceed that mentioned
Indian Partnership Act 1932: Minor as a partner in a Partnership firm
IN THE COURSE OF
CONTRACT II
SUBMITTED TO
INSTITUTE OF LAW
NIRMA UNIVERSITY
UNDER THE GUIDANCE OF
Asst. Prof. Nitesh Upadhyay
SUBMITTED BY
Saloni Palkhiwala
Roll no.: 12bblo33
Semester: IV, B.com LLb
Section C
1.INTRODUCTION
Statement of problem
According to Section 11 of The Indian Contract Act 1872 a minor cannot be a partner in a partnership firm but as per section 30 of The Indian Partnership ACT 1932 he may be admitted to the benefits of partnership and so he has a share in the profits but doesn’t have to incur any loss suffered by the firm which increases the liability of the other partners.
Review of Literature
Defining Partnership
The first codification of law of partnership in the modern form was made in the Indian Contract Act 1872( Chapter XI).This chapter consisted of 28 sections in all(sections 239 to 266) which were mainly based on English precedents. With the rapid development of commerce and trade in India those provisions felt insufficient and therefore in 1932 the Indian Partnership Act 1932 was passed substituting Chapter XI of the Indian Contract Act, 1872. This Act came in force with effect from 1st date of October,1932. According to section 1 of the said act it extends to the whole of India (except the State of Jammu and Kashmir).1 Section 4 of the Act defines partnership. 1. The analysis of the definition of partnership reveals the following essentials of Partnership.
(i) An Association of Persons
There must be a contract between two or more persons. Therefore unless there are at least two persons, there cannot be a partnership. According to section 11(1) of the Companies Act 1956 in the case of banking there cannot be more than 10 members in a partnership and in the case of any other business there cannot be more than 20 members in a partnership. If limit exceed that mentioned
References: 2. The Indian Partnership Act, 1932 3