Question

you and your 2 friends want to start a partnership business. you will be the managing...

you and your 2 friends want to start a partnership business. you will be the managing partner in the business and want to have all control on decision making. Also, you are concerned that since your friends will be acting like sleeping partners in the business , they may one day leave the business and take away confidential information with them. further, you also want your business to get dissovled if any of the other partners do leave the business.

what are the leagal boudations in this situation.
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Answer #1

As it is a partnership firm, so the business is carried out by both the partners. It is a mutual agency and thus every partner is able to carry on the business on behalf of others. So any of the partners can have all control on decision making.

There is no perpetual existence in case of partnership firm. It means that if any of the partners leave the business, the form would get dissolved automatically. The legal boundation is that the firm should have registered as a partnership firm with the mutual consensus of both the partners.

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