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Indian Partnership act

Corporate & Other Laws

If a sub - partner can share the profit of a partner with the consent of all other partner , can he also borne loss?

Deborah Susaiyappan

CA Foundation

★ 8K+

12-Sep-20 21:38

377

Answers (2)

Best Answer

A sub partner is a person who is in relation with one of the partner but not with partnership firm. He has no right or obligation with regard to partnership firm. His contract with one of the partner provides him right against share of profit which is received by him from partnership firm. Generally outsider contracts with partner only for profits but not for losses. As he is a stranger for partnership agreement he doesn't have any obligation w.r.t to loss incurred by partnership. Hope it helps!!!