The decision in the Garner v. Murray requires that (i) solvent partners should in cash equal to their respective shares of loss on realization and (ii) the solvent partners should bear the loss arising due to insolvency of a partner in the ratio of their last agreed capitals

If a business of partnership is suffering continuous losses, then any partner can file a suit for dissolution.

The Indian Partnership act came into force on 1^st October, 1932

Section 69 of the partnership act deals with the effect of non registration of firms.

A joint stock company is an artificial legal person and can enter in to partnership if it is authorized by its memorandum of association

The foundation of a partnership is contract which may be express or implied.

Section 13 (c) of the Indian partnership Act states the right of a partner to intersect on capital.

Interest on capital is payable out of profit

x and y jointly acquired a grocery shop and incurred additional expenses for purchasing furniture for the business, contributing required money equally. They leased out the shop on rent which was shared equally. In this situation, X and y are coowners and not partners since they never carried on any business.

Pledging movable property of the firm is an implied authority of a partner.

If an active partner is served a notice, the other partner can not plead ignorance of the same

An active partner in the firm, knowing that the goods were stolen ones, purchased and sold them in the firm's name. the other partner, who was a sleeping partner, knew nothing about the theft. In such a situation the partners will be held liable for the tort

Section 26 of the partnership Act states the liability of the firm wrongful acts of a partner.

The significant elements of partnership include contract, association of two or more persons, carrying on of business and sharing of profits. All these elements must coexit.

On death of a father, the son can claim share in partnership property, but he can not be a partner since he has not entered in to contract for the same with the other persons concerned.

Section 6 of the partnership Act states that the relationship arises from the contract and not from status.

Section 27 of the partnership Act states the liability of the firm for the misapplication by the partners.

X and Y carry on business in a partnership as bankers. A sum of Rs. 10000 is received by X on behalf of the firm of which Y is not aware. X appropriates the money to his personal use. The partnership is liable to make good the money since receipt of the money by X is in the ordinary course of business.

A partner can build the firm by his acts provided (i) he acts are within the scope of his authority, (ii) the acts done in the firm's name and (iii) they are done for the purposes

M is a partner in a firm whose business was to collect legitimately information about the business contracts of competitors. He bribed the clerk of a rival firm to give secret information about his master's customers and business contracts and prices. As a result the rival firm lost business worth Rs. 1, 00,000. Sufficient evidence is available with the rival form about such a bribe. In such a case, the rival firm can sue and the firm is liable to the rival firm.

An ideal partnership is one where there is mutual trust, confidence, spirit of helpfulness and goodwill.

Section 9 of the Indian partnership Act states (i) duty to carry on the business to the greatest common advantage, (ii) duty to be just and faithful inter se, (iii) duty to render the accounts and (iv) duty to provide full information.

Section 9 of the Indian partnership Act states that a partner is bound to indemnify the firm any loss caused by his fraud.

When a partner is exceeding his authority, he can personally be made liable by the rest of the partners of the firms.

A, B and C are partners in a firm of XYZ & Co. They bought 100 bags of sugar. They agree to sell the sugar from their joint account and share profit. IN such terms and conditions, they are partners.

The successful working of a partnership depends upon mutual confidence and utmost good faith.

A creditor can sue all partners together and can sue them separately

The true test of partnership is mutual agency i.e where the business is carried on by a partner or by another on his behalf so that there is a mutual agency between them. If the relation of Principal and agent exists between the parties constituting a group and formed with a view to earn profits of a business. It is said to be a partnership. Of course, other essential elements should be also present.

Partnership in which the partners do not fix any term and are free to break their relationship at their sweet will is known as partnership at will.

A, B and C are partners in a firm of ABC & Co. D, an outsider, deals with the firm through A. Between A and B A is the Principal and A is also an agent of B and C. In addition. D can sue, in case of default A, B and C.