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1. Ans.
1
Sec. 4 of Indian Partnership Act 1932 defines_
“Partnership is the relation between persons who have agreed to share the
profits of the business carried on by all or any one of them acting for them”
1. Association of persons_
a. The term persons for purposes of Sec 4. includes a natural person of individual
competent to contract. Thus a minor persons of unsound mind are disqualified
being incompetent to contract. Similarly, a partnership firm is not deemed to be
a person in the eyes of law.
Duli chand V/S CIT (Commission of Income Tax)
1956 Supreme Court
2. Agreement_
a. Contract: - Partnership brings in to existence essentially out of an agreement
and not from status or successions. Hence Section 5 lays down, “That
Partnership arises from a Contract & not from Status”
Thus Members of J.H.F (Joint Hindu Family) i.e. Co – Parceners are not
partners. Because their relation arises not from contract but from inheritance.