GENERAL DUTIES OF PARTNERS IN TANZANIA

GENERAL DUTIES OF PARTNERS IN A PARTNERSHIP

Written by FAUSTA DANIEL

 

There are different definitions on the term partnership, for the purpose of legal enforcement there are words or terminologies to be considered while defining partnership and these words or terminologies are;

1. Relationship                              2. Two or more persons

3. Carrying on business                  4. Making Profit

By including these words or terminologies in the definition of partnership will make it legal so it will be less challenged. Hence we can define partnership as;

The relationship which subsists between two or more persons carrying on business in common with intention of making profit. Partnership arises from contract and not from status so there should be written document which have all of the terms and conditions to the contract of partnership which is known as partnership deed.

GENERAL DUTIES OF PARTNERS IN PARTNERSHIP

Partners are presumed to have equal rights, duties, obligations and contributions to the partnership unless stated otherwise in their partnership deed. Hence the following are the duties which bind every partner in the partnership.

(i)patterns should carry on the business of the partnership for the greatest common advantage

(ii)partners must be just and faithful to each other

(iii)partners must render true accounts and full information of all things affecting the partnership to any partners or his legal representatives.

The partners are not limited to adhere to the only aforementioned duties, they can add their own but in agreement and every partner must agree to them.

The law which provides for partnership in Tanzania is the Law of Contract Act, cap 345 Revised Edition 2002, especially on section 190 to 222, but for this purpose read section 192.