What is meant by partnership? State the consequences of non-registration of a partnership firm.

Question

Accepted Answer

Partnership is a relationship between persons who have agreed to share the profits of a business carried on by all, or any of them acting for all. Consequences of non-registration: (i) A partner cannot file a suit against the firm or other partners for enforcing rights from a contract or the Act. (ii) A right from a contract cannot be enforced in any Court by or on behalf of the firm against any third party. (iii) The firm or its partners cannot claim a set-off or other proceedings in a dispute with a third party.