Smu 3
Master of Business Administration - Semester 3
MB 0051: “Legal Aspects of Business
(4 credits)
(Book ID: B1207)
ASSIGNMENT- Set 1
Q1. Discuss the nature and significance of business law.
Q2.What is Partnership? Briefly state special features of a partnership on the basis of which its existence can be determined under the Indian Partnership Act?
A partnership is defined as “the relationship between persons who have agreed to share profits of a business carried on by all, or by any of them acting for all”. On analysis of the definition, certain essential elements of partnership emerge. The law relating to partnership in India is contained in the Indian Partnership Act, 1932.
1. Partnership is an association of two or more than two persons. There must be at least two persons who should join together to constitute a partnership, because one person cannot become a partner with himself. These persons must be natural persons having legal capacity to contract. Thus, a company (which is an artificial person) cannot be a partner. Similarly, a partnership firm cannot be a partner of another partnership firm. As regards maximum number of partners in a partnership firm, Sec.11 of the Companies Act, 1956, puts the limit at 10 in case of banking business and 20 in case of any other business
2. Partnership must be the result of an agreement between two or more persons. An agreement presupposes a minimum number of two persons. As mentioned above, a partnership to arise, at least two persons must make an agreement. Partnership is the result of an agreement between two or more persons (who are known as partners after the partnership comes into existence).
3. The agreement must be to carry on some business. The term „business‟ includes every trade, occupation or profession [Sec.2(b)]. Though the word „business‟ generally conveys the idea of numerous transactions, a person may become a partner with another even in a particular adventure or undertaking
MB 0051: “Legal Aspects of Business
(4 credits)
(Book ID: B1207)
ASSIGNMENT- Set 1
Q1. Discuss the nature and significance of business law.
Q2.What is Partnership? Briefly state special features of a partnership on the basis of which its existence can be determined under the Indian Partnership Act?
A partnership is defined as “the relationship between persons who have agreed to share profits of a business carried on by all, or by any of them acting for all”. On analysis of the definition, certain essential elements of partnership emerge. The law relating to partnership in India is contained in the Indian Partnership Act, 1932.
1. Partnership is an association of two or more than two persons. There must be at least two persons who should join together to constitute a partnership, because one person cannot become a partner with himself. These persons must be natural persons having legal capacity to contract. Thus, a company (which is an artificial person) cannot be a partner. Similarly, a partnership firm cannot be a partner of another partnership firm. As regards maximum number of partners in a partnership firm, Sec.11 of the Companies Act, 1956, puts the limit at 10 in case of banking business and 20 in case of any other business
2. Partnership must be the result of an agreement between two or more persons. An agreement presupposes a minimum number of two persons. As mentioned above, a partnership to arise, at least two persons must make an agreement. Partnership is the result of an agreement between two or more persons (who are known as partners after the partnership comes into existence).
3. The agreement must be to carry on some business. The term „business‟ includes every trade, occupation or profession [Sec.2(b)]. Though the word „business‟ generally conveys the idea of numerous transactions, a person may become a partner with another even in a particular adventure or undertaking