Topics of Law Test 19

The document containing the terms and conditions of the partnership agreement is known as Partnership Deed. It is a stamped paper on which the terms and conditions for the regulation of the partnership are written. It also contains the names, details, rights, and duties of all the partners.

Partnership is the result of a contact. It does not arise from status , operation of law or inheritance. Thus at the time of death of the father , who has a partner in  partnership firm , the son can claim share in the partnership property but cannot become a partner unless he enters into a contract for the same with others persons concerned.

Implied terms of a contract refer to the terms and conditions that are assumed to be included in the contract even though not clearly stated. For example, Section 37 of the Sale of Goods Act, 1930 states that if seller delivers wrong quantity of goods and the buyer accepts them as it is instead of returning, he is bound to pay the seller although the contract does not specify anything about payment in case of wrong quantity delivery. Section 36 of the Act specifies that when the contract does not specify the place for delivery of the goods, it is to be delivered either at the place where the contract for sale or agreement to sell has been entered into or in their absence in the place of production manufacturing. Section 30 of the Act states that once the buyer has obtained possession of the goods, it is to be assumed that it is free from any lien or encumbrance. In other words, the seller's lien ends at that point of time, irrespective of the fact whether ir has been stated in the contract or not.