is not a legal entity.Butit is a group of persons associatedfor a specific objective.
partnership firms can not form a Partnership firm.
can form partnership firm.
Banking activity– 10
Max for Non-banking activity – 20
As per section 11 of Company act.
number of members exceeds 10/20 it is an illegal association.
firms are to be registered with Registrar of Firms.
unregistered firm can not sue it’s debtors but it can be sued.
can be admitted for the membership of the firm, but he/she entitles only for
the benefits of the farmer.Within 6
months after attaining the majority, the minor should declare his/her
willingness to be a partner.If he does
not declare, he/she automatically becomes a partner of the said firm.
death of partner, operation in CC a/c to be stopped
:a] As per sec. 42 of Partnership act,
once the partner dies,
the firm is automatically
b] to avoid application of clayton’s rule in case of debit
balance vide sec. 59 to 61
if Indian Contract act.
c] to protect the interest of the Bank.
Partnership letter is necessary while opening an account.
:a] partners declare in the latter that
they are jointly and
b] the undertake to inform
the Bank if there is any change
in the constitution of
11. If the
same documents are signed by different parties on different dates, which date
will be date of the document?
parties to a document sign it on different dates, the practice is to reckon the
last of such dates as the date of the document.However, the limitation period, as far as a partnership firm is
concerned, starts from the earliest date, i.e., the date on which one of the
partners first signed the document on behalf of the firm (IBA Bulletin, Feb
partner delegate others for firm’s operations ?
Ans : Every
partner is an accredited agent of the firm as per sec 18 of Partnership act.
He being a
delegate (of the firm and that of other partners) can not further delegate as
per sec 190 of Indian Contract act.
Legal Aspects of Banking :: Partnerships
Reviewed by Manohar Veera