RELATION OF PARTNERS WITH THE THIRD PARTIES

According to Partnership Act the relationship of partners with the third parties are as follows:

(1) Right to Represent : Each partner can represent the firm as per partnership deed and the firm is liable to the acts of such partner. If a partner committed forgery then the other partner can deprive his right through the authorized court.

(2) Firm will liable : The right of a partner can be restricted by partnership deed. If third party has no knowledge about the restriction then the firm will be liable to the acts of each partner.

(3) Responsibility : Each partner is responsible jointly or personally for acts done on behalf of firm while he is a partner.

(4) New Partner is not Responsible : A new partner is not responsible for the acts done before his entry as partner. The outgoing partner will be free with the consent of concerned third party and remaining partners. The outgoing partner will not held liable for the acts done by other partners if third party had knowledge about his departure from partnership.

(5) Transfer of Ownership : If a partner has transferred or mortgaged his ownership even then he can claim his share of profit such person will not be a partner and he can not inspect the accounts of the firm without the consent of all partners.