We are forming a partnership firm for carrying on some business with two partners. Capital contribution of the two partners is in the ratio of 60:40. One of the terms of the deed is that the partner with 40% of capital contribution will be a partner in profit only. He will not be sharing any loss incurred by the firm. Moreover, he will be drawing a monthly remuneration, subject to increment every year.
My questions are:-
- Can such partnership deed be executed?
- At the time of dissolution of the firm can he take back his capital contribution without being liable to any third party i.e. is he free from the liabilities of the firm at the time of dissolution?
- A partner who is a partner in profit only, is he liable to the third party at the time of dissolution of the firm?
