Duties of Partners
The duties of partners can be classified into two forms:
1.Absolute duties and
2.Qualified duties.
1.Absolute Duties
Absolute duties are fixed by law which cannot be violated
by partners agreement. These duties are applicable to all partnership.
1. Every partner must act diligently and honestly in the discharge
of his duties to the maximum advantage of all partners.
2. Every partner must act in a loyal and faithful manner towards
each other.
3. Every partner must act within the scope of the authority entrusted
to him
4. Every partner is bound to share the losses of the firm equally unless
otherwise agreed.
5.Every partner must indemnify the firm against loss sustained due
to his willful negligence in the ordinary course of business.
6. No partner can transfer or assign his interest in the firm to others
without the consent of other partners.
7. Every partner must maintain and render true and correct accounts
relating to the firm’s business.
8. No partner can engage himself in a business which is likely to
compete with the business of the firm.
9. Every partner should use the firm’s property only for the firm’s
business and interest.
10. No partner can make any secret profit by way of commission
on purchases or sales effected on behalf of the firm.
2. Qualified Duties
Qualified duties given in the Act can be modified by an
agreement of partners entered into.
3. Liabilities of partners.
1. Every partner is liable for the debts of the firm to an unlimited
extent, jointly and severally.
2. A retiring partner is liable for all the debts incurred before his
retirement
3. An incoming partner is liable only for the debts incurred by the
firm after his admission into the partnership.
4. In case of deceased partner, his legal representatives are liable
only for the debts incurred by the firm before his death
5. In the case of minor partner, he is not personally liable for the debts
of the firm. Only his share in the profits and assets of the partnership is
liable for the debts of the firm.
6. Every partner is liable to make good the loss that the firm or other
partners suffer as a result of his negligence.
The duties of partners can be classified into two forms:
1.Absolute duties and
2.Qualified duties.
1.Absolute Duties
Absolute duties are fixed by law which cannot be violated
by partners agreement. These duties are applicable to all partnership.
1. Every partner must act diligently and honestly in the discharge
of his duties to the maximum advantage of all partners.
2. Every partner must act in a loyal and faithful manner towards
each other.
3. Every partner must act within the scope of the authority entrusted
to him
4. Every partner is bound to share the losses of the firm equally unless
otherwise agreed.
5.Every partner must indemnify the firm against loss sustained due
to his willful negligence in the ordinary course of business.
6. No partner can transfer or assign his interest in the firm to others
without the consent of other partners.
7. Every partner must maintain and render true and correct accounts
relating to the firm’s business.
8. No partner can engage himself in a business which is likely to
compete with the business of the firm.
9. Every partner should use the firm’s property only for the firm’s
business and interest.
10. No partner can make any secret profit by way of commission
on purchases or sales effected on behalf of the firm.
2. Qualified Duties
Qualified duties given in the Act can be modified by an
agreement of partners entered into.
3. Liabilities of partners.
1. Every partner is liable for the debts of the firm to an unlimited
extent, jointly and severally.
2. A retiring partner is liable for all the debts incurred before his
retirement
3. An incoming partner is liable only for the debts incurred by the
firm after his admission into the partnership.
4. In case of deceased partner, his legal representatives are liable
only for the debts incurred by the firm before his death
5. In the case of minor partner, he is not personally liable for the debts
of the firm. Only his share in the profits and assets of the partnership is
liable for the debts of the firm.
6. Every partner is liable to make good the loss that the firm or other
partners suffer as a result of his negligence.
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