Business

Duties of Partners

To Perform True Services

Every partner must perform true services in partnership i.e., to maintain the true accounts, to keep the actual vouchers records and transactions and to permit the other partners to inspect the accounts fairly.

To be Sincere and Careful

Every partner must be sincere, faithful and careful to other partners. He should discharge his duties very fairly.

To work for Best Advantages

Every partner is expected to conduct this business of the firm to the best advantages.

To Provide all Types of information

As one partner is an agent of another, he must conveys all types of information to them.

Compensation for Loss

If a partner commits a fraud to his copartners he must compensate them for any loss caused to them by his act.

To use the Partnership Property

Every partner is bound to use the property of the firm for the best interest of all the partners in the absence of an agreement.

To conduct the Business without Remuneration

In the absence of agreement every partner must conduct the business activity without any remuneration i.e., salary or commission in the form of goods.

Distribution of Loss

The amount of loss is sustained by each partner equally in the absence of any agreement.

To compensate for Intentional Neglect

If a firm suffers loss due to the intentional neglect in the conduct of the activities the partners are bound to indemnify the firm for such loss.

To Carry on Competing Business

Partners are not allowed to carry on business other than the business of the partnership as long as they are partners.

To keep the Secrecy

A partner is bound to keep the secrecy of the business. In case of leakage of secrecy, he will be personally liable.

Transferring of Interest

Partners interest cannot be transferred to any third person so as to make him a member in the firm.

To conduct within powers

Every partner is restricted to conduct his activities conferred upon him within the scope of powers.

To Get any Undue Advantages

The business property cannot be directly or indirectly used for private purposes. Partners are not allowed to take any undue advantages from the business of the partnership.

To Return Earned Profit

The profit earned from the sources of firm will be paid to the management of the partnership.

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