Section 11 of act contain the general rule that the mutual rights n duties of the partners are to be determined by their mutual agreement.
Rights of the partners
- Right to participate in business:- according to section 12(a) each partner has equal right to participate in running of the business. As business belong to every partner.
- Right to express opinion: according to section 12(c) each partner has right to freely express their opinion as business belong to each partner.
- Right to access books &accounts: a/c to section 12(d) each partner have right to inspect books of business accounts. This right is equally applicable to active and passive partner.
- Profit sharing right: a/c to section 13(b) partner share their profit or loss either equally or agreed ratio.
- Right to interest on capital:- a/c to section 13(c) partners have right to get interest.
- Right to indemnify/ compensation:- a/c to section 13(e) partner while acting on the behalf of the firm may make certain payment and also incur some liability.
Duties of partners
- General duties: each partner has the following common duties such as taking business to greatest goods , being fair, rendering true accounts, giving right information.
- Duty to work properly
- Duty to compensate fraud: section 10 every partner to indemnify the firm for the loss caused to the business.
- Duty use firms assets properly: a/c to section 15 partners can use the assets of the firm for business purpose but not for personal use.
- Duty not to earn personal profit : a/c to section 16 the business belong to all the partners jointly.it is therefore expected of every partner that he will act to greatest common advantages rather than acting for personal profit at the coast of others partners.
- Render true accounts.
- Duty to act in good faith.
