Vasant Kumar (Lawyer) 21 August 2008
The Indian Partnership act sec-4 defines partnership as "agreement between two or more persons who agreed to share the profits of the business done by all or any one of them acting for all".
If a single person carries the business, then wont that mean that it is a sole proprietary business rather than partnership?
Is that mean that the real test of partnership is there has to be sharing of profit of the business and there has to be an principal and agent relationship has to be there?
Manish Singh (Advocate) 21 August 2008
if theres no two persons then it can not be a partnershi[ firm. it would b proprietorship concern if carried by a single person.
yes it mens that the real test of partnership is that there has to be sharing of profit of the business and there has to be an principal and agent relationship has to be there.
Mohit Attri (lawyer) 21 August 2008
yes, partners r liable for every act done by another partner same as relation of an agent nd pncpl. princpl is liable for every act done by agnt.
Vasant Kumar (Lawyer) 22 August 2008
The real test to identify whether partnership or not is:-
1 sharing of profits
2 there has to be principal agent relationship.
Thank you Manish Singh and Mohit for throwing some light on this concept.
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