Explain the Duties, Rights and Liabilities of each Partner

DUTIES OF THE PARTNERS

Following are the important duties of the partner :

1. To be Sincere and Faithful :-
Every partner should be fair and faithful in dealing to other partners.

2. Maintenance of True Account :-
Every partner should prepare the true account of the firm for the other partners.

3. Common Advantage :-
Every partner should performs his duties for the common advantage of all the partners.

4. To keep the Secrecy :-
It is the duty of the partner that he should maintain the secrecy of the business from outside.

5. Use of Firm Property :-
It is the duty of the partner that he may not use the property of the firm for his personal interest.

6. Provide All Information's :-
It is the duty of the partner that he must provide all the necessary information's about the business to other partners.

7. To Carry on Other Business :-
It is the duty of the partner that he should not carry on any other business except the partnership.

8. Profit should be Paid to the Firm :-
If a partner earn profit from any sources of the firm, it should be paid to the management of the firm.

9. Compensation for Loss :-
If a partner commits a fraud his co-partner he must compensate the loss.

10. Distribution of Loss :-
In the absence of agreement, each partner will pay equally.

11. Use of Powers Within Limits :-
It is the duty of the partner that he should use his powers within the limits delegated by the firm.

12. To Abide the Decision :-
A partner should abide by the decisions taken by the majority of the partners.


RIGHTS OF THE PARTNERS

1. Right of Profit :-
All the partners are entitled to share the profits of the firm equally.

2. Right of Opinion :-
Every partner has right to express his opinion relating to business activities. But the nature of business can not be changed by a single partner.

3. Right of Inspection :-
Every partner has right to check the accounts of the business.

4. Right of Management :-
Every partner has a right to take part in the management of the business of the firm.

5. Right of Salary :-
A partner has a right to demand salary for performing his duties in the management of a business.

6. Right to Exercise Power :-
To protect the firm from loss, every partner has a right to use his powers.

7. Right of Retirement :-
Every partner has a right to retire from the firm serving notice.

8. Right of Existence :-
A partner cannot be expelled by any other partner from the business. Every partner has a right to live in the business.

9. Right of Admission :-
No new partner can be admitted without the consent of all the present partners in business.

10. Right of Interest :-
If a partner has provided extra capital than his share, he can also receive interest on it.


LIABILITIES OF PARTNERS

1. Loss Liability :-
In case of loss each partner will equally contribute the loss. If there is no agreement.

2. Liability of All Actions :-
All the partners of the firm are jointly responsible for all the actions done by the firm.

3. Liability of New Partner :-
A new partner is liable for all the acts of the firm done after he becomes a partner.

4. Liability of Insolvent Partner :-
The property of insolvent partner is not liable for any obligations of the firm after the date on which the order of insolvent is issued by the Court.

5. Liability of Deceased Partner :-
If a partner dies and the firm suffers losses the property of the deceased can not be held liable for any payment.

6. Liability of Retired Partner :-
A retired partner will not be responsible for any act of the firm after the date of retirement.

7. Liability of Fraud :-
If any partner commits fraud the other partners will also be equally liable.