1. Person - Section 11 of the Indian Contract Act states that anyone who is of sound mind, of the legal age of majority under the laws to which they are subject, and who is not barred from entering into contracts by any such laws is qualified to become a partner. Partnership firms and limited companies are not included in the definition of "person." For instance, company A and company B cannot partner. However, subject to the regulations governing the number of partners, all of the partners of firms A and B may join a single partnership.
2. Minor - A minor is not allowed to have a partner. In accordance with the law to which he is subject, a person who is a minor may not be a partner in a firm, but with the approval of all the partners for the time being, he may be allowed to the benefits of partnership.
3. Lunatic - A person who lacks mental capacity is unfit to be a partner.
4. Alien Enemy - Unlike an alien friend, an alien enemy cannot sign a partnership agreement.
5. Company - Because a corporation is an artificial person, it is unable to enter into a partnership or become a partner.
6. Female - Women can be partners whether they are married or not.
7. When a partner of a firm is declared insolvent by the court, he no longer counts as a partner as of the date the order of adjudication was issued.
Development of a Partnership
A partnership is founded on a contract. It is only produced by contract, not by virtue of anything in the legal system. The agreement may either be express or implied. Mutual trust and confidence are at the heart of any successful partnership. The parties, who must be able to enter into a contract, must freely and genuinely consent. All the terms and conditions of the partnership must be agreed upon in order for it to last for a long time and to avoid disagreements between the partners in the future. An oral agreement may be acceptable while things are going smoothly, but disagreements between the partners may arise during difficult times.
The requirement that the agreement be in writing serves the interests of the parties. A "Partnership Deed" is the legal document that specifies the obligations and rights of each partner in a partnership. It needs to be carefully written and signed by each spouse. In compliance with the Indian Stamp Act, it must be bestamped. A copy of the Deed should be sent to each partner. Because partners cannot enforce the terms of the Deed through a court of law without such registration, the firm should be registered with the Registrar of Firms and a copy of the Deed should be filed at that time.
Timeframe of the Partnership
The relationship is referred to as "partnership at will" when there is no written agreement between the partners defining the length of their partnership or how it will be determined. [Chapter 7]. When a partnership is "at will," any partner may dissolve the business by giving the other partners notice (or he may express his intention to retire from partnership) The partnership agreement may specify the partnership's lifespan (for example, 10 years) or how it will be dissolved. Without such a clause, the partnership is "at will." When a "specific partnership" is created, the endeavour for which it was formed ends, ending the partnership.
