Rights and Duties of a Partner

Two friends in Vashi open a gym. One puts in ten lakh rupees and sits at the front desk every day. The other puts in two lakh and turns up on Saturdays. At the end of the first year the gym earns six lakh. Who gets what? If the partners never discussed it, the Indian Partnership Act 1932 answers for them, and its answer may surprise the friend who put in more. This topic is about those default rules and the duties that sit alongside them.

In two minutes

The mutual rights and duties of partners are set by their contract, express or implied from a course of dealing, and where the contract is silent the Partnership Act supplies default rules in ss.9–17: duty of good faith and accounts, equal sharing, no salary, interest only on advances, and a right to take part in management and inspect books.

The rest of this chapter

The full explanation, the cheat sheet, every previous-year question at every mark weight, the quiz and the answer skeletons are part of Contract – II on LexBlox Semester. Sign in to unlock the subject, or read Module 1 of Legal Language and Writing free.