Sociology | Mercantile Law | International Law | International Relations

Partners of a business owe certain duties to each other as well as to the performance of the business they have adopted. Partnership Act – 1932, in this regard, maintains following duties on the partners of a firm;

A. General Duties
Article#9 of the Act establishes a number of general duties that every partner has to observe;

To Carry on Business
It is general duty of every partner to carry on the business of the firm to the greatest common advantage. This is to be rendered by performing for what he has been tasked.

Faithfulness
A partner is ought to remain faithful to the business that its firm owns and to the partners he has contract with.

Accounts Information
Every partner must render true accounts and full information of all things affecting the firm, or to any other partner or his legal representative.

B. Indemnification for Loss
Article#10 imposes an important duty upon the partners of a firm by stating that; “Every partner shall indemnify the firm for any loss caused to it by his fraud in the conduct of the business of the firm.”