1. Every partner is a joint owner of the property of the firm.
2. Every partner has a right to take part in the management of the business.
3. Every partner has a right to share the profits of the firm.
4. Every partner has a right to inspect books of accounts and all records of the firm.
Every partner has a right to express his opinion on all matters relating to the business. When the decisions are taken by majority of votes, he is bound by the decision of the majority.
Every partner has a right to receive interest at 6% p.a. on any amount contributed by him over and above the capital contribution.
Every partner has a right to recover any amount spent by him in the ordinary course of the business.
Every partner is entitled to do all things that are necessary to safeguard the interest of the firm.
Every partner has a right to protect the firm from any losses.
Every partner has a right to continue in the partnership, i.e., he cannot be expelled until the provisions of the Articles say so.
Every partner has a right to retire from the firm with the consent of the other partners.
Every partner has a right to prevent the admission of a new partner without his consent.
Every partner has the right to have property of the firm, exclusively used for the common benefit of the firm.
An outgoing partner is entitled to share the profits or receive interest at 6% until his share in the property of the firm is delivered to him.
Duties of Partners:
Every partner must attend to his duties in the conduct of the business.
Every partner should carry on the business of the firm to the greatest common advantage.
Every partner should be faithful and just to other partners.
Every partner should share the losses of the firm as agreed upon.
No partner should make any profit for himself at the expense of the firm.
Every partner should compensate the firm for any loss caused by his fraud or willful negligence in the management.
7. A partner should not carry on any business which is likely to compete with the business of the firm.
8. Any profit earned by a partner by using the property of the firm or name of the firm should be paid to the firm.
9. A partner should act within his authority.
10. A partner cannot transfer his interest or share in the firm to a third party without the consent of other partners.
11. Every partner should try to protect the firm from loss to the best of his capacity.
(c) Liabilities of Partners:
Every partner is liable for the debts of the firm to an unlimited extent, jointly and severally (Individually). If the assets of the firm are insufficient, creditors can recover the debts from any or all of the partners.
A retiring partner is liable for all the debts incurred before his retirement. He is not liable for debts incurred after his retirement.
An incoming partner i.e., a new partner is liable only for the debts incurred by the firm after his admission into the partnership.
In case of deceased partner, his legal representatives are liable only for the debts incurred by the firm before his death.
In case of minor partner, he is not personally liable for the debts of the firm. Only his share in the profits and assets of the partnership is liable for the debts of the firm.
Every partner is liable to make good the loss that the firm or other partners suffer as a result of his negligence.