Question No. 11: Differentiate between Partnership and Co-Ownership. Answer: DIFFERENTIATION BETWEEN PARTNERSHIP & COOWNWRSHIP: 1.

Definition: Partnership: According to L.H. HANEY: Partnership is the relations between persons who agree to carry on a business in common with a view to private gain. According to S.E.THOMAS: Partnership is an association from two to twenty people who carry on business together for the purpose of making profits. Co-ownership: It means there is ownership of joint property but there is no common business to carry on by the partners. CO-OWNERSHIP AGREEMENT Agreement: It is not necessarily the result of an agreement.

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Partnership is the result of an agreement.

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Transfer of right. A A partner cannot co-owner can transfer the transfer the right to the other partners his interest other without the consent to a stranger. of the other partner, his

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PARTNERSHIP

Agent. A co-owner is not as such the agent of anther. Lien. One co-owner has no lien on the thing owned in common, for expenses. Profit or loss sharing. It does not necessarily involve community of profit or loss.

interest to a stranger. A partner is the agent of another partner. A partner has a lien on the thing owned by the firm, for expenses. It involves community or profit or loss.

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No partner can seek division of the partnership Division of property. A properties in species. co-owner has a right of Partnership business division in specie. is to earn profit. Gain. A co-owner In the partnership does not necessarily exist there is restriction for for gain. maximum number of Limit for numbers. In partner i.e., twenty in case the co-ownership there is of other forms of no restriction for the business and in banking maximum number of conot more than ten. owner. A partner has a legal Legal claim. A coclaim on the property of owner has no legal claim partnership property. on the joint property. 10 Partnership is affected 10 Dissolution Risk. Co- by the death or

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ownership cannot be insolvency or retirement dissolve due to the death, of any partner. insolvency or retirement of any partner. 11 A minor cannot 11 Minor case. A minor become a regular partner can become a regular coin partnership. owner.

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