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Distinction Between Partnership Firm and Hindu Joint Family

There are several key distinctions between a partnership firm and a Hindu joint family firm: 1. A partnership arises from a contract whereas a Hindu joint family firm arises from status and law. 2. In a partnership, members have no rights by birth but in a Hindu joint family firm, sons have rights by birth. 3. A partnership is governed by partnership and contract law while a Hindu joint family firm is governed by Hindu law. 4. A partnership can include members of any religion or caste but a Hindu joint family firm is limited to members of the Hindu religion and caste.

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296 views1 page

Distinction Between Partnership Firm and Hindu Joint Family

There are several key distinctions between a partnership firm and a Hindu joint family firm: 1. A partnership arises from a contract whereas a Hindu joint family firm arises from status and law. 2. In a partnership, members have no rights by birth but in a Hindu joint family firm, sons have rights by birth. 3. A partnership is governed by partnership and contract law while a Hindu joint family firm is governed by Hindu law. 4. A partnership can include members of any religion or caste but a Hindu joint family firm is limited to members of the Hindu religion and caste.

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Distinction between Partnership Firm and Hindu Joint Family Firm:

No Distinction between Partnership Firm and Hindu Joint Family Firm: Hindu
joint family Firm
1 The relation of partnership aeries from contract and not from status The
relation of Hindu Joint Family Firm arises from status and not from contract. It
arises by operation of law.
2 In partnership firm members will have no right by birth. In Hindu joint
family business son gets right by birth.
3 Every partnership firm is governed by the provisions of Indian Partnership
Act,1932, Indian Contract Act 1872 etc. Every Joint family Firm is governed by
the codified Hindu Laws.
4 Every partnership firm is governed by the provisions of Indian Partnership
Act,1932, Indian Contract Act 1872 etc. Every Joint family Firm is governed by
the codified Hindu Laws.
5 In partnership rights and duties of partners are determined by the provisions
of Partnership Act and Partnership Agreement. . In Hindu Joint family Firm rights
and duties of members of the family are controlled by such general principles of
Hindu law which contract the transactions of joint family.
6 A partnership firm may be constituted irrespective of the members� caste and
religion. A joint Hindu family firm is limited to Hindu Religion, that too the
caste to which the members belong.
7 In absence of an agreement of contrary intention on death or insolvency of
any partner Partnership Firm Dissolves. A joint Hindu Family firm does not
dissolve on the death of any family member. Successor of the deceased gets his
interest and business of the firm continues as usual.
8 No person can be introduced as a partner without the consent of all the
members. No person can be introduced as a partner without the consent of all the
members.
9 In partnership any member can ask for the account of acts done by his co-
partners. Any partner can ask for details of profit and loss also. In Hindu
joint family any member cannot ask for account of profit and loss of serving his
relation with the business.
10 Partnership is a specific application of the principles of agency. It is
often said �The law of partnership is undoubtedly, a branch of the law of Principal
and Agent�. The principal of agency does not apply in case of Joint Hindu family
firm.

11 In Partnership every partner is the principal and agent of the firm,


therefore, all the partners are liable for the acts done by any partner for the
conduct of the business of the firm. Manager of a Hindu joint family firm is
vested with a right to take loan, pledge family property for the conduct of the
business, but other members of the family do not have these right.

12 In partnership every partner is jointly and severally liable for debts and
liabilities of the firm. Liability of every partner is unlimited. Beside the
property of the firm personal property of a firm is also liable for the liabilities
of the firm. The liability of the members is limited to the extent of his
interest in the assets of Hindu Joint Family.

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