Partenership Act

Question 1

Essentials of Partnership

Answer 1

1. There must be an agreement: (stating Capital, P&L
   ratio, Duration, Rights and Duties)
2. There must be association of two or more persons (2
   – 20, except in bank, professional firms)
3. Parties must agree to carry on business: (charity, or
   rental income is not business)
4. There must be sharing of profits among partners
5. There must be mutual agency among partners
6. No separate legal status:
7. Unlimited Liability

Question 2

Difference between Partnership and

Co-Ownership

Answer 2

1. Formation
2. Business
3. Number of persons
4. Sharing of profit
5. Agency
6. Transfer of interest

Question 3

Particular Partnership:

Answer 3

Particular Partnership: