The Partnership Comes Into Existence Only An Agreement

2. The goal of creating a partnership should be to carry out operations. Each partner is both an agent and a client of the partnership company. The partner is a client because he is responsible for his own actions and the actions of other partners. He is an agent of the company, because he can act on behalf of other partners and linked them through his actions. Some partners may not be actively involved in the business, while others may be actively involved. A person cannot have a partnership. It is a collective effort of at least two people to create a partnership. A partnership is essentially a contract between one or more people in relation to a company. The two people who enter into a partnership should be responsible for the conclusion of a contract. For example, a father and son who are a minor cannot enter into a partnership. 1.

Subject to a contract between the partners and the provisions of Section 30, no person may be admitted to a company as a partner without the agreement of all existing partners. All partners are jointly responsible for all activities of the partnership. In other words, in all cases where the company`s assets are not sufficient to meet the obligations of the company`s creditors, the private sector assets of the partners may also be added. Creditors can put any partner on hold – financially sound – and get their debts met. Since the partnership is based on a contract between people, its training does not pose any particular legal problems. In general, the partnership agreement is reduced to the letter and a partnership agreement with the terms of the partnership is established and the rights, obligations and obligations of the partners are developed. Another essential element of a partnership is that it is created for the purpose of carrying out an activity (but legitimate). An association or company that was first created to carry out certain charitable, religious or social works cannot be considered a partnership. Even a condominium is not a partnership. Partnerships recognized by a public body may benefit from special tax advantages. Among developed countries, for example, business partnerships are often preferred over companies in tax matters, as dividend taxes are levied only on profits before being distributed to partners.

However, depending on the structure and competence of the company in which it operates, the owners of a company may be subject to greater personal liability than as a shareholder of a company. In these countries, partnerships are often regulated by antitrust laws in order to curb monopolistic practices and encourage competition in the open market.