A partnership is basically a matter of agreement between the parties or partners in the business. Section 24 of the Partnership Act sets out rules which apply in the absence of express o implied agreement to the contrary. Outline five of these rules

  • These are the rules applicable in the absence of a partnership
    • Partners share profit or loss equally
    • A partner who incurs loss or liability in the course of the firms business is entitled to indemnity
    • A partner who lends money to the firm is entitled to interest at the rate of 6% per annum
    • A partner is not entitled to interest on capital before ascertainment of profit
    • A person cannot be admitted as a partner without consent of all existing partners
    • Every partner is entitled to take part in the management of the firm‟s business
    • Differences in ordinary matters are resolved by a majority of the partners
    • The firm can only change the nature of its business if all partners agree
    • A partner cannot be expelled from the firm unless the power to do so is expressly vested on the
    • Partners have access to the firm‟s books of
    • Partners are not entitled to remuneration for managing the firms business

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