The Indian Partnership Act of 1932 specifies the law governing partnership firms in India. This Act establishes the rights and obligations of the partners with respect to their relationships with one another and other legal relationships with third parties that arise incidentally from the creation of a partnership. Thus, in legal and contractual relationships arising out of and in the course of the business of a partnership firm, the Act establishes the position of a partner as well as a partnership firm vis-à-vis third parties.
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