Lecture 18

Duties of Partnership:
There are some duties of partners. Here are the following:
To share loses: In case of loss, it is the duty if every partner to bear the loss equally or in the profit sharing ratio.
To work faithfully: Partnership is based on mutual trust and confidence of the partners. |It is the duty of every partner to be honest and loyal to other partners as well as to the firm
To compensate: It is the duty of every partner to compensate the losses or damage to the firm or to others due to his negligence or deliberate misconduct.
To work without remuneration: Partnership is operated either by all partners or by any of them acting for all. It is the duty of every partner to work in the firm without charging and expecting remuneration.
To act within authority: It is the duty of every partner to act within the scope of the authority entrusted to him.
To maintain current account: It is the duty of every partner to maintain proper and correct books of accounts, so that they may give true and fair view of the business.

Rights of Partnership:
This gives rise to mutual right and duties to every partner involved in the firm's business.
Rights to take part in management: Every partner has the right to take active part in the management and operation of the business of the firm.

Rights to express opinion: Every partner has right to express his views and give advice to other partners for the benefits of business. These opinion and advises may be accepted or rejected by the other partners.

Right to inspect and take copies of accounts: Every partner has right to inspect the books of accounts of the firm. They can also obtain copies of account
Rights to share profit: Every partner right to share the profit of business. They can share the profit equally or in the agreed ratio.

Rights to have interest: Partners cannot demand any interest on their capital investment. But they have right to get up to 10% interest on loans and advances made by them to the partnership firm.
Rights to be indemnified: Every partner is entitled to get compensation from the partnership firm CRis respect of liabilities incurred ad payment made by him. He should also be compensated for the losses caused by other partners.
Right to property: Every partner has right to use the property of the partnership firm for the benefit of the firm. They should not use the business property for their personal purposes.
Right to leave the firm: Every partner has right to leave the firm with the consent if other partner.
Right to ownership: Every partner has right on the property of the firm. Thus, property of the firm cannot be sold by one partner without the consent of other partners.
Right to dissolve: A partner has the right to dissolve the partnership with the consent of all partners. Even, if other partners refuse then also he can dissolve the partnership by informing other partners.