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Difference between partnership and joint hindu family business

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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.

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SEE VIDEO BY TOPIC: Partnership vs HUF - General Nature of Partnership - CA CPT - CS & CMA Foundation

Differences between Partnership & HUF Business

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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. Following are the notable points of distinction between Partnership Firm and Hindu Joint family Firm.

Partnership Firm. Hindu joint family Firm. The relation of partnership aeries from contract , and not from status. The relation of Hindu Joint Family Firm arises from status and not from contract.

It arises by operation of law. In partnership firm members will have no right by birth. In Hindu joint family business son gets right by birth. Every Joint family Firm is governed by the codified Hindu Laws. In partnership rights and duties of partners are determined by the provisions of Partnership Act and Partnership Agreement. In Hindu Joint family Firm rights and duties of members of the family are controlled by such general principles of Hindu law which contract the transactions of joint family.

A joint Hindu family firm is limited to Hindu Religion, that too the caste to which the members belong. In absence of an agreement of contrary intention on death or insolvency of any partner Partnership Firm Dissolves. A joint Hindu Family firm does not dissolve on the death of any family member. Successor of the deceased gets his interest and business of the firm continues as usual. No person can be introduced as a partner without the consent of all the members.

A member of Hindu joint family acquires an interest in the firm business by birth, marriage, adoption etc. No consent of other members necessary. Other members cannot deprive his right. In partnership any member can ask for the account of acts done by his co-partners. Any partner can ask for details of profit and loss also. In Hindu joint family any member cannot ask for account of profit and loss of serving his relation with the business.

Partnership is a specific application of the principles of agency. The principal of agency does not apply in case of Joint Hindu family firm.

Manager of a Hindu joint family firm is vested with a right to take loan, pledge family property for the conduct of the business, but other members of the family do not have these right. There is restriction on the maximum number of members in the case of a partnership firm. Minimum two and maximum twenty partners allowed. There is no such restriction. In partnership every partner is jointly and severally liable for debts and liabilities of the firm.

Liability of every partner is unlimited. Beside the property of the firm personal property of a firm is also liable for the liabilities of the firm. The liability of the members is limited to the extent of his interest in the assets of Hindu Joint Family. Share to Twitter Share to Facebook. Labels: Law of Contracts , Partnership.

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Difference between Partnership and Joint Hindu 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. Following are the notable points of distinction between Partnership Firm and Hindu Joint family Firm.

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 partnership comes into existence, by means of a contract between partners, whereas, a joint Hindu family hereinafter referred to as HUF arises as a result of status, i. Accordingly, if two or more members of an HUF carry on an inherited business, it is not a partnership because it has been created by status or obtained by birth and not by an agreement. HUF is a unique form of business existing only in India and is governed by the provisions of the Hindu Law. It comes into existence by operation of Hindu Law and not out of contract.

Distinguish Between – Partnership Firm and Joint Hindu Family Firm

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Distinction between Partnership and Joint Hindu Family Firm

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SEE VIDEO BY TOPIC: Partnership Vs Joint Hindu Family- Partnership vs Agency - Partnership vs Joint Venture,

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Jan 24, - The differences between Joint Hindu Family business and partnership are as follows Joint Hindu Family Business: freeandfriendlytours.comm two members.

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Comments: 3
  1. Molkree

    I congratulate, this idea is necessary just by the way

  2. Duzuru

    It seems to me, what is it already was discussed, use search in a forum.

  3. Moogulkree

    It is nonsense!

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