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 


Partnership Firm

Hindu joint family Firm 
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. 

In partnership firm members will have no right by birth.
In Hindu joint family business son gets right by birth. 

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. 

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. 

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. 

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.

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.   

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.  

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.

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.

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. 

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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