Validity of partnership deed signed between Dubai and Hyderabad
17-Apr-2023 (In Corporate Law)
Last yr my friend offered me partnership in an export business. 2 companies were formed, 1 in Hyderabad and 1 in Dubai (both are partners. The verbal agreement was that he will put in the capital and arrange for material from India and I will sell it in Dubai and manage operations of Dubai company. I also made clear that I will not put in any money in business/not share losses but in partnership deed profit/loss sharing was 60:40. Good sales was done in Dubai but the material from his suppliers turned out to be faulty and he decided to close Dubai office this year. He has also gone into dispute with his suppliers and his suppliers are threatening for legal action. I am currently collecting all pending dues from Dubai which will be sent back to Indian company a/c but i fear that after receiving all money he might ask me to share the losses in Indian company. How can I protect myself from sharing losses or from legal action from his suppliers?
if partnership is limited liability and that also depends upon the contracts terms which you entered and hence please share the partnership details and contract terms and must be scrutinized and then only opinion can be delivered but as per the law if a partnership is registered and there is joint and several liability between partners
It is necessary to go through the documents: The partnership Deed, Registration and Memorandum and articles of the company, the business transactions, the purchase orders, outstanding amount due and other details. Until we go through all the documents we not be able to clearly specify the legal course of actions to be taken in this matter.
It may be understood that there is a clear distinction between and partnership and Company. Partnership the partners are liable for liabilities of partnership firm while the share holders are not liable for outstanding amount to the supplies by the company.
So it is essential that the documents relating to the transactions be perused to decide the proper course of legal steps to be taken.
It may be understood that there is a clear distinction between and partnership and Company. Partnership the partners are liable for liabilities of partnership firm while the share holders are not liable for outstanding amount to the supplies by the company.
So it is essential that the documents relating to the transactions be perused to decide the proper course of legal steps to be taken.
Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.
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