If the partnership is formed for an undefined time, it ‘is called partnership at will Any partner can dissolve ii at any iimeh by giving the notice. According to partnership at I 1932
“If no provision ii made in the agreement regarding of the partnership, it is called partnership at Partnership at will may be created under the following circumstances -tal
If partnership has been formed for an indefinite period, it is called partnership at will If partnership has been formed for a particular venture and after completing such venture it remains continue, it becomes a partnership.
2. PARTICULAR PARTNERSHIP
If the partnership is formed for a particular object of temjxwary nature, it is called particular partnership. Or” the completion of a particular venture, it comes to an elid Under this no regular business is done. EXAMPLES
Partnership for the constnjclion of a building
Partnership for producing a film.
3 LIMITED PARTNERSHIP
Limited partnership is that in which liability some paitners is limited up to the amount of their caprtf In this partnership, there is at least one partnef who unlimited liability
In Pakistan, this Type of partnership is not foi There is a separate partnership act for it. MAIN FEATURES
There is at least one partner who has Ifr , liability
There is at least one partner who unlimited liability.
NUMBER OF PARTNERS
There are at least two partners or 20 in ordinary business and not more than l( banking business
ADMISSIQNQF NEW PABT\E£
New partners may be admitted in partnership without consent of limited partners ‘”
The registration of .this partnership compulsory by law.
Limited partner can transfer his share to any other person with the consent of another partners.
INSPECTION OF BOOKS
Limited partner has a right to inspect the books of accounts.
RIGHTS OF SUGGESTIONS
Limited partner has a right to give to others who manage the business.
PARTICIPATION IN MANAGEMENT
A limited partner cannot take part in the management of the business.; rfj) WITHDRAWAL Of CAPITAL
A limited partner cannot withdraw his capital until he remains in partnership business. (k) SEPARATE LEGISLATION
It is controlled under ihe limited -partnership act 1907 instead of partnership act 1932.
(b)’ The Liability of each partner U limited up to hi capital invested in business.
(c) Capital invested by each partner is not equal.
(d) No partner is allowed to lend anything out of tto joint asset.
(e) The profit or loss is divided among partners 01 Ihe basis of capital invested by them
(0 This type of partnership may be formed betweei or among free and slave persons, Muslims am non-Muslims, men, women and children.
(g) Each partner is the agent of the other.
(h) The agreement in this partnership is flexible
(i) This partnership is practicable in every field ol business.
It is a partnership in which two or more persons d same religion with equal capital are entered into an agreement
(a) In this partnership, all partners contribute tv-amounts
(b) The share of each partner in profit or loss Jl equal
(c) Each partner is an agent and helper of tfF partner.
(d) There is written agreement between partners fr the equality of profit and loss sharing ratio
(e) Each partner has an equal status.
(f) The terms of partnership agreement are m flexible.
h is an association of two or more different skilled involved in the operation of a business like , accountant, and labourers etc.
a) Skilled persons join together to start this business.
b) The profit is distributed among partners according to the terms of agreement
(c) There rs no capital in this partnership.
(d) The capitalists provide rhe capital.
it is a partnership among reputable persons who to buy goods on credit in order to supply them in the
It is & partnership among reputable persons.
The main object of partnership is to buy goods
on credit and to sell them in the market
No partner invests capital i Each partner is an agent of another. t The profit and loss is shared among the partners
on equal basis
TERMINATION OF PARTNERSHIP
I shall above forms of partnership each partner has a .fe terminate the partnership by giving the notice to
Partnership Is also terminated on the death partner.