Anyone can enter into a partnership if they have the capacity, because cooperation cannot be established without an agreement. A person with a “non-solid mind” cannot be a partner. A partner agreement creates a partnership; they share reciprocal rights and obligations. There must therefore be the agreement of all partners in the interest of a company. However, these contracts are governed by the Partnership Act 1931. In general missions, partners are required to conduct the company`s business to the greatest common advantage. They should remain faithful to each other and remain faithful to all things that concern the company, to all the partners of its legal representatives with all the information (Article 9). In this section, the relationship is considered one of the “very good beliefs,” although partners are not trustees for each other. In some cases, the relationship between partners is held in trust. In conclusion, each partner is obliged to compensate the company for any damage it has suffered as a result of its fraud in the business (Article 10). Management is assured by mutual agreement between the two partners in all circumstances.
In the event of a dispute in this case, the partners will settle them by mutual agreement, either mutually or in the presence of a third-party mediator. A partner of the company cannot do business similar to those of that company. Where it is established that a partner is engaged in a similar activity, it is considered a violation of this agreement. The dissolution of a company may be done in accordance with the agreement by the partner`s compliance with the contract between the parties. A fixed resolution can be automatic: a) is made by assessing all partners or all but one, as being bankrupt or b) of any event that makes it an illegal business activity of the company. There are also circumstances where a partner has become an unsalted mind and that madness must be a lasting nature. After the dissolution of a fixed person who is dealing with his partners, it can be assumed that they remain the agents of the other until the dissolution is announced. However, in order to absolve the partner of any liability to third parties for any act carried out by one of them after the dissolution. Partners must publicly announce the dissolution so that customers know that they are no longer working with the old company. The Partnership Act of 1932 provided for the registration of a partnership company, but registration is not mandatory. Non-registration is not part of a partnership agreement or a transaction between the parties or third parties.
By law, one partner cannot sue the other partner for the dissolution of the partnership unless the partnership is registered. Similarly, a company cannot sue a third party to enforce contract law.