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Difference between partnership and joint hindu family business ?

Answer» Difference between Partnership and Joint Hindu family1. Formation - The basis of Partnership firm is a contract between persons whereas a Hindu undivided family is created by status i.e., a person becomes its member by virtue of his being born in the particular family.2. Addition of a new partner or member - When a new partner has to be introduced into a partnership firm, consent of all the partners is needed for the same whereas no such consent is needed for the addition of a member into the joint Hindu family. A person becomes the member of the family on being born in that family.3. Mutual agency - There is mutual agency between the partners of a particular firm, and the act done by any of the partners binds the firm whereas there is no such mutual agency between the members of a joint Hindu family. The Karta of the joint Hindu family has all the powers to act on the behalf of the family and he is the only person who can represent the family.4. Liability - The liability of a partner is not only joint liability or limited to his share in the partnership business, the liability is several liability also. Such liability is unlimited and even a partner’s personal property can be attached for the partnership debts. On the other hand, the liability of the coparceners, on the other hand, is limited only to the extent of their shares in the family business.5. Minor - A minor cannot become a partner in a firm, he can be admitted only for the benefits whereas a person becomes a coparcener right from his birth.


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