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  • Change in relation of partners is called reconstitution of the firm
  • Consent of all the partners is required at the time of admission of a partner
  • An incoming partner is not liable for the past debts of the firm done before his admission in the firm
  • A retiring continues to be liable to the third parties for the acts of the firm done before his retirement
  • A sleeping partner will not be liable for the acts of the firm after his retirement even if a public notice is not given
  • If a partner is declared as insolvent, he is no more a partner in the firm from the date on which he is declared insolvent by the court
  • A continuing partner guarantee given to the firm or to a third party in respect of the transaction of the firm, is revoked as to future transaction from the date of any change in the constitution of the firm
  • Dissolution of partnership may or may not result in dissolution of the firm, but dissolution of the firm necessarily means dissolution of partnership
  • When a firm carries on several separate ventures, the illegality of one or more venture does not dissolve the firm
  • Incapacity of a sleeping partner is not likely to affect the business of the firm and cannot be a suffi cient ground of dissolution of the firm
  • When the business of the firm cannot be carried on, except at losses, the court may allow dissolution of the firm

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