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  • Any change in fundamental matters like change in nature of business or reconstitution of a firm can be made only with the consent of all the partners
  • ƒInterest on capital if provided by an agreement, should be paid only out of profits
  • If the agreement is silent, interest on advance is payable @ 6% p.a even if the firm suffersloss
  • ƒIf the partnership deed is silent regarding the share of profit, partners share profits and losses equally
  • ƒPartnership property can be used only for the partnership business
  • ƒIf any personal income is earned by any partner using the firms property, then he is liable to pay such profits to the firm
  • ƒAbsolute duties are imposed by law. It cannot be varied by an agreement among the partners
  • ƒThe firm and the other innocent partners shall be liable to the third parties for the fraud caused by the guilty partner, but can recover the loss from the guilty partner
  • ƒThe firm will not be liable to a third party, if the third party knew about the restrictions imposed on the partner
  • ƒIf any act is done by a partner in an emergency, to protect the firm from suffering any loss, then the firm will be liable for such an act

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