Mr. Neeraj Gupta contracted with a firm. According to the contract, he loaned a heavy amount to the firm and in exchange he obtained the power of taking some decisions regarding the firms business. Besides, he used to get 9% interest on the loaned money and 12% of profit earned by the firm. Can we consider Mr. Neeraj as a partner of the firm? Give reasons for the same.
Answers
If one partner is against any project then the firm would not take that project,but in this situation Mr Neeraj have a very little role in taking decisions for the firm.
We can't consider Mr.Neeraj as a partner.
And moreover partners pay equal amount in order to start a business but Mr.Neeraj has not paid anything.
Answer:
No, Mr. Mukul Gupta cannot be regarded as a partner of the firm because on the basis of the contract he has been given power to take a few decisions only , whereas to become a partner of the firm , the following additional conditions have to be fulfilled : <br> (i) Unlimited liability : The partners of a firm have unlimited liability . personal assets may be used for repaying debts . <br> (ii) Risk bearing : The partners bear the risks involved in running the business . the reward comes in the form of profits which are shared by them in an agreed ratio . <br> (iii) Mutual agency : The partnership business can be carried on by all partners or any one of them acting for all . In other words , every partner is both an agent and a principal of other partners .