uptodate

  The contract of guarantee is also known as the Contract of  Suretyship . Section 126 of the Indian Contract Act, 1872 defines the Contract of guarantee - a "contract of guarantee” is a contract to perform the promise, or discharge the liability, of a third person in case of his default. The person who gives the guarantee is called the “surety”. Surety is also known as Guarantor.     Rights of Surety : 1) Rights of surety on payment or performance :              According to Section 140 of the Indian Contract Act 1872, where a guaranteed debt has become due, or default of the principal debtor to perform a guaranteed duty has taken place, the surety upon payment or performance of all that he is liable for, is invested with all the rights which the creditor had against the principal debtor. 2) Surety's right to benefit of creditor's securities (Section 141) :         According to Section 141 of the said Act, ...

  What is Dissolution of a Firm? Dissolution of a partnership firm might occur without the interference of the court or by the court’s order, in any of the ways stated. It has to be noted that dissolution of the enterprise necessarily brings in the  dissolution of the partnership . Dissolution of a firm takes place in any of the following ways : Dissolution by Agreement: An enterprise is dissolved : With the consent of all the partners In accordance with an agreement between the partners Mandatory Dissolution: An enterprise is dissolved mandatorily in the below mentioned cases: When all the partners or one partner, become bankrupt, rendering them incapable to sign an agreement When the business concern of the enterprise is illegal When some occurrence has taken place which makes it illegitimate for the partners to take over and carry on the business concern of the enterprise in partnership, for example, when a partner who is a citizen of a nation becomes an alien antagonist be...

Definition of Partners According to  Section 4  of the  Indian Partnership Act, 1932 , a partnership is defined as a relationship between two persons who mutually agreed to share the profits and losses in the business. Therefore, persons who have entered into an agreement with one another are individually known as “partners”. Furthermore, as per  Black Law dictionary , a partner is a member of a firm or co-partnership; who has united with others in order to form a partnership in business.  General Types of Partner The following list includes the types of partners we come across on a regular basis. The following list of the partners are not exhaustive in nature, since the Partnership Act, 1932 does not restrict any type of Partnership which the partners wish to define for themselves.   Active/Managing Partner An active partner mainly takes part in the day-to-day running of the business and also takes active participation in the conduct and management of...