Question

Briefly discuss the following statements:

2.1 A partner never has the right to claim compensation for his contribution to the partnership

2.2 If a partner enters into a contract on behalf of a partnership without having actual or ostensible authority the partneship must ratify the contract

2.3 The affairs of a partnership must be handled with great care and skill by the partners

Answer 1

2.1 A partner never has the right to claim compensation for his contribution. The partner has the right to request for his legal remuneration according to section 13. Apart from that, the legal rights of partners in a partnership business are mentioned below:

• Right profit-sharing'

• Right to access business books

• Right to get a consultation

• Right to get chance in business conduct

• Right to claim ownership on operational capital

• Right to get advances

• Right to get indemnified

• Right to stop the entry of another partner

• Right to take retirement from business

Section 32(1), 31, 36(1), 33 and 40 have strictly depicted all the rights of partners in a partnership business. On the contrary, section 42(1) has claimed that the partner does not have the right to request for his contribution.

2.2 A single partner does not have the sole right to adopt the entire decision. Instead, the business decision should be made in collaboration with a business partner. Constitutional ratification is necessarily required from another partner in case of contract.

2.3 A partnership affair should be adequately handled with great care and skill. Both partners have must be concerned for each other. Moreover, they should be responsible for each other’s stake in the business.