PARTNERSHIP AGREEMENT AND TYPE OF PS
The PS Agreement is not so different
from any other contractual agreement - may be oral or in writing.
Subject to various contractual rules
such as illegality, misrepresentation and mistakes.
Usually the agreement sets out the
condition and terms of the partnership.
Within some limits like restraint of
trade - the partners are free to include whatever terms they wish - Sec 21 PA :
“ …… may be varied by the consent of all the partners and such consent may
be either express or inferred from a
course of dealing.”
However the contract binds the parties
of the contract only – doctrine privity of contract – it cannot affect the
third party. S.10 PA:
Two common terms - as to commencement
and duration.Statements as to the date of commencement of the partnership is
however subject to contrary proof if it can be shown that the date is
incorrect.
Duration - most agreement provide for
some method of ending the partnership.
TYPE
OF PARTNERSHIP
The PA provides for two types of
partnership:
1. Partnership entered for a fixed
term.
Ends only in accordance of the
agreement or express provision of the PA like death and bankruptcy. If entered
into for a single venture - by the completion / termination of that venture.
If this partnership continues after
the affixed time - automatically becomes a partnership at will - Sec 29
2. Partnership at will
The right to dissolve by giving notice
to the other partners - Sec 28(1) and Sec 34.
Dissolution commence from the date
mentioned in the notice or from date of communication of the notice.
PARTNERSHIP AGREEMENT AND TYPE OF PS
Reviewed by Kamaruddin Mahmood
on
7:37:00 PTG
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