BRIEFLY GIVE THE HISTORY OF PARTNERSHIP ACT
The history of Indian Partnership Act may be divided in two parts: —
1. Prior to 1932
2. After 1932
1. PRIOR TO 1932.—
Prior to 1932 the law relating to the Partnership business was contained in Sections 239 to 266 of the Indian Contract Act itself and was based on English precedents.
Due to the changes businesses, expansion of trade and commerce; the development of trade in India it was felt necessary that there should be for the help of the business community a more exhaustive enactment on the law of partnership. The Partnership Act, 1932, was enacted in the wake of this development.
2. AFTER 1932. —
To meet the growing requirements of the time the Indian Partnership Act IX of 1932, was passed on the 8th of April. 1932. The Act was formulated up on the lines of English Partnership Act of 1890. Majority of its sections are almost identical to the sections of the English Partnership Act of 1890.
WHETHER INDIAN PARTNERSHIP ACT IS EXHAUSTIVE?
Act not exhaustive —The Indian Partnership Act aimed at codifying all the laws on the subject and bringing it up to date. But it should be noted that the Act is not exhaustive.
A Partnership arises from a contract, and therefore, such a contract is governed not only by the provisions of the Partnership Act in that regard, but also, by the general law of contract in such matters, where the Partnership Act does not specifically make any provision.
SEC. 3. APPLICATION OF PROVISIONS OF ACT 9 OF 1872
The unrepealed provisions of the Indian Contract Act, 1872, save in so far as they are inconsistent with the express provisions of this Act, shall continue to apply to firms.
Thus, the rules relating to offer and acceptance, consideration, free consent, legality of object, etc. as contained in the Indian Contract Act are applicable to a contract of partnership also.
On the other hand, regarding the position of a minor, since there is a specific provision contained in Section 30 of the Indian Partnership Act, the minor's position is governed by the provisions of the Partnership Act.
