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Difference between partnership and hindu undivided family

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.

SEE VIDEO BY TOPIC: What is the difference between partnership and HUF CA CPT

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SEE VIDEO BY TOPIC: CHAPTER 23 Partnership Vs. Hindu Undivided Family (HUF) under the Indian Partnership Act, 1932

Distinction between Partnership and Joint Hindu Family Firm

Distinction between Partnership and Joint Hindu Family 1. Regulating law: A partnership is governed by the provisions of the Indian Partnership Act, Whereas A joint Hindu family business is governed by the principles of Hindu law.

Mode of creation: A partnership arises out of a contract, whereas a joint Hindu family business arises by the operation of law and is not the result of a contract. Latest law News. Breaking News. Difference between Partnership and Joint Hindu family. Formation - The basis of Partnership firm is a contract between persons whereas a Hindu undivided family is created by status i.

Addition of a new partner or member - When a new partner has to be introduced into a partnership firm, consent of all the partners is needed for the same whereas no such consent is needed for the addition of a member into the joint Hindu family. A person becomes the member of the family on being born in that family. Mutual agency - There is mutual agency between the partners of a particular firm, and the act done by any of the partners binds the firm whereas there is no such mutual agency between the members of a joint Hindu family.

On the other hand, the liability of the coparceners, on the other hand, is limited only to the extent of their shares in the family business.

Minor - A minor cannot become a partner in a firm, he can be admitted only for the benefits whereas a person becomes a coparcener right from his birth. Limit on number of persons - There is a limit on the number of partners in a firm, i. Dissolution - In the absence of any agreement to the contrary, partnership is dissolved on the death of any partner whereas joint Hindu family continues to operate even after the death of a coparcener.

Governing Law - A partnership is governed by the provisions of the Indian Partnership Act, whereas a joint Hindu family business is governed by Hindu law. Subscribe to: Post Comments Atom. Popular Posts. Current Scenario of Reservation in India..

Burden of proof and Onus of proof. The Court can decide a case only by considering the truth and value of the several facts alleged and proved by the parties as the facts ar Doctrine of Holding Out. Partnership by Holding Out is also known as partnership by estoppels.

Holding out is merely application of the principle of estoppel whi Recent Posts. Featured Posts. Recent in News.

Difference between Partnership and Joint Hindu family

The following are the top 10 differences between a Partnership business and HUF business. A partnership is a contractual relationship arising out of an agreement among the partners. A Joint Hindu Family Firm on the other hand, is a creation of law. It arises out of status and not out of an agreement. In a partnership firm, new partner can be admitted into firm only with the consent of all the existing partners, whereas a person becomes a member of the business by birth in the case of a Joint Hindu Jamily firm.

Hindu Undivided Family carrying on a family business are not partners in the sense that their relationship inter it is not governed by the Partnership Act, , but the Hindu Law while deciding joint ownership in the family business. The only substantial resemblance between the two forms of association seems to be that in each case the members carry on business together. In all other respects, they are wholly dissimilar.

Distinction between Partnership and Joint Hindu Family 1. Regulating law: A partnership is governed by the provisions of the Indian Partnership Act, Whereas A joint Hindu family business is governed by the principles of Hindu law. Mode of creation: A partnership arises out of a contract, whereas a joint Hindu family business arises by the operation of law and is not the result of a contract. Latest law News.

Distinguish Between – Partnership Firm and Joint Hindu Family Firm

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Difference Between Partnership and Hindu Undivided Family

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In a partnership, minor cannot become co-partner though he may be admitted to the benefit of partnership. 5. Registration: Registration of the partnership is not.

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