Self assessment

Property of the firm (Sec. 14) Relation of partners to third parties

Ravi Chouhan 215111061

PROPERTY OF THE FIRM (Sec. 14)

It is up to the partners of the firm to determine by agreement that what shall be the property of the firm and what shall be the separate property of one or more of the partners. If there is no express agreement then the source from which the property was obtained, the purpose for which it has been acquired and the mode in which it had been dealt with, are the important determining factors.

In the absence of the contract

1. All property originally brought into the common stock of the firm. 2. All rights or interest in the property, so brought. 3. All property acquired for or by the firm and all rights and interest in any property so acquired. 4. All property acquired for the purpose of the business of the firm and all rights and interest in any property so acquired. 5. Goodwill of the business of the firm (Sec. 14 para 1).

GOODWILL-

Property of a firm includes the goodwill of the business (Sec. 14). Goodwill is the value of reputation and connection which the firm establishes over time due to its integrity, efficient service to the customers, quality of its products etc. Goodwill is also the sap and life of the business, without which the business would yield little or no fruit.

Agreement between partners in restraint of trade According to Section 27, every agreement by which anyone is restrained from exercising, a lawful profession, trade or business of any kind, void. But the partners of a firm may agree that a partner shall not carry on any business other than that of the firm while he is a partner [Sec. 11 (2)]. If a partner carries on any business of same nature, competing with that of the firm, he has to account for and pay to the firm all profits made by him in that business.[Sec. 16 (b)].

Exceptions to the general rule agreement in restraint of trade is void A partner shall not carry on any business other than that of the firm while he is a partner[Sec. 11(2)]. An outgoing partner may agree with his partners not to carry on a business similar to that of the firm within a specified period or within specified local limits[Sec.36(2)]. Upon anticipation of the dissolution of the firm, partners may make an agreement that some or all of them will not carry on a business similar to that of the firm within a specified period or within specified local limits(Sec.54). Where the goodwill of the firm is sold after dissolution, a partner may carry on a business competing with that of the buyer and he may advertise such business. Upon the sale of the goodwill of the firm, any partner may make an agreement with the buyer that such partner will not carry on any business similar to that of the firm within a specified period or specified local limits[ Sec. 55(3)].

RELATION OF PARTNERS TO THIRD PARTIES

Implied authority of a partner May be Express authority. May be Implied authority. 1. The act done must relate to the usual business of the firm. 2. The act must be such as is done within the scope of the business of the firm in the usual way. 3. The act must be done in the name of the firm.(Sec.22)

Acts within the implied authority of a partner: Purchasing goods (in which the firm deals). Selling the goods of the firm. Receiving payments of the debts due to the firm. Settling accounts with the persons dealing with the firm. Engaging servants for the partnership business. Borrowing money on the credit of the firm. Drawing, accepting, and indorsing bills in the name of the firm. Pledging any goods of the firm for the purpose of borrowing money. Employing any solicitor to defend an action against the firm.

The implied authority does not empower a partner to-

Submit a dispute relating to the business of the firm to arbitration. Open a banking account on behalf of the firm in his own name. Compromise any claim or portion of a claim by the firm. Withdraw a suit on behalf of the firm. Admit any liability in a suit or proceeding against the firm. Acquire immovable property on behalf of the firm. Transfer immovable property belonging to the firm. Enter into a partnership on behalf of the firm [sec. 19(2)]

Partners authority in an emergency (Sec. 21)1. They are done to protect the firm from loss. 2. The partner acts as a prudent person would act under similar circumstances in his own case.

Implied authority and third parties1. Extension and restriction of a partners implied authority (Sec. 20). 2. Effect of admission by a partner (Sec. 23). 3. Effect of notice to an acting partner (Sec. 24). 4. Liability of a partner for acts of the firm (Sec. 25). 5. Liability of the firm for the wrongful acts of a partner (Sec. 26). 6. Liability of firm for misapplication (Sec. 27).

Starting the PreparationFirst Team MeetingI am very thank full that he gave me the opportunity to work in a team. As it was a complete team effort, we arranged a team meeting to first divide the given topic among us. We also came up with a date to discuss our readings and clarification of any doubts about the topic. Second Team MeetingAfter a week, we again met on the pre decide date. Till then, we all had prepared our power point presentations. We then merged all our slides to maintain the continuity of the topic.

SWOT Analysis

Strengths of my presentation1. I was thorough with my content. 2. As I was clear with what I have to deliver, I felt no difficulty relating my speech with the slides. 3. Slides were catchy and with points only, convenient for the audience. 4. I was clear to the audience considering my voice clarity.

Weaknesses of my presentation1. I had the longest part in the topic hence it was a little difficulty to hold the audience. 2. Remembering the sections was little difficult. 3. Eye contact was not up to the mark.

Opportunities for further improvements1. I think I have the ability to deliver contents properly; I must work upon my eye contact to the audience. 2. Also I must try to connect with the audience through asking questions. 3. Body language, hand movements are good but not up to the mark.

Threats for me1. Sometimes I go off the path and start delivering the irrelevant information. 2. Maintaining the long presentations, there is a threat of forgetting the content. 3. Last but not the least, nervousness is the biggest threat.

(All the points mentioned above came as a result of self analysis and feedback from the peer group and Team members)

Learning from the presentation:

1. 2. 3. 4. Co-ordination among the members of the team. Presenting the content you are not comfortable with. Overcome the self shortcomings like nervousness, speech, voice clarity. The most important learning that, the things which are difficult to remember can easily be remembered by discussing with others and giving them small presentations.