Short Notes on LAW OF CONTRACT - II

LAW OF CONTRACT - II

CONTRACT - II or Contract Part 2 starts from Section -124 till Section- 238 of Indian Contact Act,1872 which deals with Specific Contracts like 'Contract of Indemnity ' ,' Contract of Guarantee ' 'Contract of Bailment ' 'Contract of Pledge ' etc.
Partnership Under INDIAN PARTNERSHIP ACT ,1932 and SALE OF GOODS ACT ,1930 is also inclusive along with LIMITED LIABILITY PARTNERSHIP ACT, 2008.

First of all it is pertinent to discuss about INDIAN PARTNERSHIP ACT ,1932 then SALE OF GOODS ACT and at last LLP and Specific contract

THE INDIAN PARTNERSHIP ACT 1932

Definitions -

Definition of " Partnership", "partner", firm" and "firm

name"- "Partnership" is the relation between persons who have agreed

to share the profits of a business carried on by all or any of them acting

for all.

Persons who have entered into partnership with one another are

called individually " partners" and collectively " a firm" , and the name

under which their business is carried on is called the " firm name"

a) An “act of a firm" means any act or omission by all the

Partners, or by any partner or agent of the firm which

gives rise to a right enforceable by or against the firm":

b) " Business" includes every trade, occupation and

Profession.

c) "Prescribed" means prescribed by rules made under this

Act"

d) "Third party " used in relation to a firm or to a partner

therein means any person who is not a partner in the

firms" and

e) Expression used but not defined in this Act and defined in

the Indian


Scope and Nature of Partnership:

”Partnership is a relationship between persons who have agreed to share profit of business carried on by all or any of them acting for all”
so basically .so the minimum requirements for a partnership is:
(1)persons who have agreed (or agreement )
(2)to share the profits of business (or profit arising out of business )
and
(3) business carried on

Mode of determining existence of partnership - In determining

Whether a group of persons is or is not a firm, or whether a person is or

Is not partner in a firm, regard shall be had to the real relation between

The parties, as shown by all relevant facts taken together.

Explanation- 1. The sharing of profits or of gross returns arising

from property by persons holding a joint or common interest in that

property does not of itself make such persons partners.

Explanation- 2 The receipt by a person of a share of

the profits of a business, or of a payment contingent upon the earning

of profits or varying with the profits earned by a business, does not of

itself make him a partner with the persons carrying on the business ;

and i, particular, the receipt of such share or payment -

a) by a lender of money to persons engaged or about to

engage in any business.

b) by a servant or agent as remuneration.

c) by the widow or child of a deceased partner, as annuity,

or

d) by a previous owner or part owner of the business , as

consideration for the sale of the goodwill or share thereof.

does not of itself make the receiver a partner with the persons

carrying on the business.

(Continues...)