Partnership
is the result of an agreement between the parties. In other words it can be
said that mutual agreement between persons constituting Partnership is
necessary for the establishment of partnership. On the other hand Hindu Joint
Family Firm is the result of status, not of agreement. Members of Hindu joint
family firm inherit such business in succession.
Distinction between Partnership Firm and Hindu Joint Family Firm:
Following are the notable points of distinction between Partnership Firm and Hindu Joint family Firm
No |
Partnership Firm |
Hindu joint family Firm |
1
|
The relation of partnership aeries from contract , and not from
status
|
The relation of Hindu Joint Family Firm arises from status and not
from contract. It arises by operation of law.
|
2
|
In partnership firm members will have no right by birth.
|
In Hindu joint family business son gets right by birth.
|
3
|
Every partnership firm is governed by the provisions of Indian Partnership
Act,1932, Indian Contract Act 1872 etc.
|
Every Joint family Firm is governed by the codified Hindu Laws.
|
4
|
In partnership rights and duties of partners are determined by the
provisions of Partnership Act and Partnership Agreement. .
|
In Hindu Joint family Firm rights and duties of members of the
family are controlled by such general principles of Hindu law which contract
the transactions of joint family.
|
5
|
A partnership firm may be constituted irrespective of the members’
caste and religion.
|
A joint Hindu family firm is limited to Hindu Religion, that too
the caste to which the members belong.
|
6
|
In absence of an agreement of contrary intention on death or insolvency
of any partner Partnership Firm Dissolves.
|
A joint Hindu Family firm does not dissolve on the death of any
family member. Successor of the
deceased gets his interest and business of the firm continues as usual.
|
7
|
No person can be introduced as a partner without the consent of
all the members.
|
A member of Hindu joint family acquires an interest in the firm
business by birth, marriage, adoption etc. No consent of other members necessary.
Other members cannot deprive his right.
|
8
|
In partnership any member can ask for the account of acts done by
his co-partners. Any partner can ask for details of profit and loss also.
|
In Hindu joint family any member cannot ask for account of profit
and loss of serving his relation with the business.
|
9
|
Partnership is a specific application of the principles of agency.
It is often said “The law of partnership is undoubtedly, a branch of the law
of Principal and Agent”.
|
The principal of agency does not apply in case of Joint Hindu family
firm.
|
10
|
In Partnership every partner is the principal and agent of the firm,
therefore, all the partners are liable
for the acts done by any partner for the conduct of the business of the firm.
|
Manager of a Hindu joint family firm is vested with a right to
take loan, pledge family property for the conduct of the business, but other
members of the family do not have these right.
|
11
|
There is restriction on the maximum number of members in the case
of a partnership firm. Minimum two and maximum twenty partners allowed.
|
There is no such restriction.
|
12
|
In partnership every partner is jointly and severally liable for
debts and liabilities of the firm. Liability of every partner is unlimited. Beside
the property of the firm personal property of a firm is also liable for the
liabilities of the firm.
|
The liability of the members is limited to the extent of his
interest in the assets of Hindu Joint Family.
|
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