Assignment #4
Name: Muhammad Daniyal
Abdul Rehman
Enrollment no: 02-111221-086
02-111221-235
Class: BBA 4-D
Subject: Business law
SARAZ GARMENT STORE
A) MAIN BUSINESS
ABOUT US (BUSINESS):
At Saraz garment store, since 2018, we are drawing our
inspirations from the diverse global arena. We constantly strive
to challenge the limitations of all the possibilities when it comes
to weaving, printing, embroidery & embellishments. We have
multiple designs of clothing with all brands and lower cost than
the outlet itself, that’s where we differ from everyone. The
cloth used is not mere fabric for us, we treat it like an artist
treats his canvas; with the love, respect and dedication that it
deserves., we understand that style and fashion are a vital part
of your lives and so we strive to bring it to your doorstep in the
easiest possible way.
ABOUT WHAT WE SELL:
We sell happiness, in matter as branded clothes of outlets lower
than the outlet prices, for the people who wants to wear brand
and be a part of it, but couldn’t be due to the high prices, that's
where a large population stacks out, and we care about and
share happiness.
NATURE OF BUSINESS:
The nature of business is all about garments, ladies and gents
both, as in contributing completely to the brands and
distributing with deliveries all over the Pakistan and
internationally.
B) PLACE OF BUSINESS
1.GULSHAN E IQBAL (KARACHI)
2.GULISTAN E JAUHAR (KARACHI)
3.NORTH NAZIMABAD (KARACHI)
PRODUCTION AND SERVICES
Our services and production are completely successful in due to
demand and sales with marketing team. Production with time
duration of 2 days a lot of 1000 pieces and service is as per the
customer demand.
MISSION STATEMENT OF SARAZ GARMENT STORE:
To deliver value to our Customer through innovative technology,
teamwork and by fulfilling our social and environmental
responsibilities and sharing happiness to all of them, we care
for them. Fulfilling its mission, the Company shall operate on
the following core values:
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Integrity
Respect
Passion
Quality
PARTNERSHIP
The first paragraph of section 4 of the Partnership Act defines
partnership as a relation between persons who have agreed to
share the profits of the business carried on by all or any of them
acting for all. Partnership is thus not a contract nor an
agreement but is merely a relation between persons who have
entered into an agreement. When two or more people start a
business or carryon a trade together to turn a profit, the result
can often be a strong union that blends complementary skills,
monetary resources, customers and influences to help the
venture succeed. But, sometimes, such relationships can sour,
the business can fail, and the parties can decide to go their
separate ways. In the eyes of the law, by the very nature of
entering into business with another party, you may be
considered a partnership whether you have a written
agreement or not.
PARTNERSHIP AGREEMENT:
The agreement of partnership was made on 12thJuly 2018 with
all the 4 partners in Karachi.
C) KIND OF PARTNERSHIPS
WE HAVE CHOSEN PARTNERSHIP AT WILL
A business partnership is a specific kind of lawful relationship
formed by the contract between two or more individuals to
carry on a business as co-owners. The partnership ratio invests
in business, and each investor has a share in the profit and
losses. Depending on the liability.
There are three types of partnership
1. Partnership at will:
When partners do not fix the period of partnership or do not fix
the period of partnership occasion or occasion when the
particular will end, such partnership is called partnership at will.
2. Particular Partnership:
The partnership which is formed for carrying on a particular
project or adventure or particular or anything single
responsibility. This type of partnership is intending to come to
end when particular or adventure is completed is known as
particular partnership.
3. Fixed partnership:
Where a provision is made by the contract for the duration of
the partnership, this partnership is called fixed partnership.
Hence such a partnership will not be a partnership at will, it
will be a partnership for a fixed term. After the expiration of
such a duration, the partnership shall also end.
D) NUMBER OF PARTNERS:
There are 4 partners in agreement of Saraz Garment Store
and the partners are all independent financially and
completely understandable about all the duties, rights and
profit-losses management.
1-SARA MAQSOOD:
Business Women, Muslim and lives in Karachi and is
considered as the main, first partner, without her signature
no other contracts can be continued or started.
2-SHABBIR KHAN:
Business man, Muslim and lives in Karachi but also moves out
of town, and is considered as second partner, All the legal
decisions and dealership are under him.
3-SAAD IMANAT:
An entrepreneur, Muslim and lives in Karachi, Considered as
Marketing and advertisement head.
4-MAAZ JAVAID:
A media handler, Muslim lives in Karachi, Considered as
purchase manager and raw material supply holder.
RIGHTS AND RESPONSIBILITIES OF PARTNERS:
RIGHTS:
1. Every partner has the right to participate in the conduct
and management of the business.
2. Every partner has the right to have access to and to inspect
and copy any of the books of accounts of the partnership
firm.
3. Every partner has the right to be consulted and heard in all
matters affecting the business of the firm.
4. The partners have the right to share equally in the profits
earned and shall contribute equally to the losses sustained
by the partnership firm.
5. No person can be taken as a partner in the partnership
firm without the consent of all the existing partners.
RESPONSIBILITIES OF PARTNERS:
1. Every partner of the firm is bound to attend diligently to
his duties in conducting the partnership business.
2. Partners are bound to carry on the business of the firm to
the greatest common advantage.
3. Every partner is liable to the partnership firm for any loss
caused to it by his willful neglect in the conduct of the
business of the firm.
4. A partner is not entitled to get any remuneration for taking
part in the conduct of the business.
5. No partner can assign or transfer his partnership interest
to any other person so as to make him a partner in the
partnership.
E) NOMINAL PARTNER
We have Actress Saba Qamar as nominal partner.
Person who has an interest in the success of a partnership
firm but, legally, is not partner because he or she neither
owns a part of the firm nor actively participates in its affairs.
Often a nominal partner is a well-known, well connected
individual whose name lends credibility and recognition to
the firm, and is paid a fee for this service.
PARTNERS IN PROFIT ONLY:
We have no partners in profit only.
Partner sharing the profits of the business without making
himself responsible for losses, if any, is known as partner in
profits only. He contributes capital and is also liable to the
third parties like other partners.
F) NUMBER OF EMPLOYEES
There are currently more than 300 employees currently in
the business The number of employees depends on the
demand and work production.
G) NUMBER OF SLEEPING AND ACTUAL PARTNER
We have no sleeping partners.
The sleeping partner only invests the money, he does not do
any managerial work or administrative work. He is not
involved in the day to day works of the company.
ACTUAL PARTNER:
All the 3 partners are actual working partners.
An active partner is an invested person who is involved in the
daily operations of the partnership. An active partner helps
run the business to enhance his or her returns and is
therefore considered a material participant. This person
typically shares more risk and return versus a limited or silent
partner.
H) NUMBER OF MINOR PARTNER
There are 2 minor Ahmed Saeed and Ayesha shah
A person who is a minor according to the law is below 18, to
which he is subject may not be a partner in a firm, but with
the consent of all the partners for the time being, he may be
admitted to the benefits of partnership. The minor is not
personally liable for any loss.
I) SHARING % OF CAPITAL
Capital % is the portion of a corporation's Capital backbone
that has been obtained by the mutual agreement in the
corporation to a partnership, usually for cash. "Share capital"
As in
SARA MAQSOOD 25% 25,00,000 (MANAGEMENT)
SHABBIR KHAN 30% 30,00,000 (ACCOUNTS)
SAAD IMANAT
25% 25,00,000 (SOCIAL MARKETER)
MAAZ JAVAID
20% 20,00,000 (PURCHASE MANAGER)
J) RATIO OF PROFIT SHARING
The ratio in which the profits or losses of a business are
collective. For a partnership, the profit ratios will be set out in
the partnership agreement. This will show the total, usually
given as a percentage of the total profits, attributable to each
partner.
SARA MAQSOOD 25%
SHABBIR KHAN
30%
SAAD IMANAT
25%
MAAZ JAVAID
20%
K) REGISTRATION OF PARTNERSHIP
ASPECTS INCLUDED IN PARTNERSHIP DEED – DEFINITION
In order to enter into partnership, a clear agreement with
respect to the terms, conditions and all aspects concerning
the partners is essential. The written agreement which
specifies the terms and conditions that govern the
partnership is called the Partnership Deed.
The partnership deed generally includes the following
aspects:
 Name of firm
 Nature of business and location of business
 Duration of business
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Investment made by each partner
Distribution of profits and losses
Duties and obligations of the partners
Salaries and withdrawals of the partners
Terms governing admission, Retirement and expulsion of
a partner
 Interest on capital and interest on drawings
 Procedure for dissolution of the firm
 Preparation of accounts and their auditing
APPLICATION FORM:
In their firm they complete the application form and then
signed by all partners they provide following information in
this application form which are as follows:
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Name of the Firm
Name and address of all partners
Place of business
Duration of the partnership
Date of joining of partners
Date of beginning of business
COPIES OF CNIC:
Attested copies of hi-tech national identity cards of all
partners are attached by their application form.
PAYMENT OF CHALLEN PRESCRIBED FEE:
Registration of firm requires payment of agreed fee the paid
challan is attached by their application procedure for
registration.
SUBMISSION OF DOCUMENTS:
The agreed application form is duly signed by all partners
along with attested copies of CNIC of all partners and the fee
paid challan is submitted to the administrator of firms of the
area in which their business firm is located.
CERTIFICATE OF REGISTRATION:
After receipt of documents for registration of their firm the
administrator office check and confirm all their documents
and then registrar approve their registration and the name of
the firm is entered in register of firms and then they issue
documentation of registration of firm duly stamped and
signed by him.
L) POWER OF WORKING PARTNER
EXPRESS:
The most common way of forming a partnership is expressly
that is, in words, orally or in writing. Such a partnership is called
an express partnership.
IMPLIED:
Implied in cases where there is no express agreement. In that
particular case, the law itself grants certain powers and does
not allow the partners to carry out certain other functions.
“Implied”
The working partner manages the business and hence get paid
in the form of salary or remuneration for it. While the profit is
being distributed, the salary part has to be met first, any profit
remaining after this can be divided on the basis of the ratio of
the partner’s investment.
The working partner are Sara, Maaz and Saad.
M)MODES OF RECONSTITUITON
THERE ARE 3 MODES OF RECONSTITUION:
1) INCOMING PARTNER:
Incoming Partner is the partner who is joining the partnership
firm by contract or is added to the firm.
Wardah is incoming partner as she is approved by all the other
partners, Just the documentation is in process.
2) OUTGOING PARTNER:
Outgoing Partner is the partner who is leaving the partnership
firm. It can be because of death, expansion, retirement etc.
THE OUTGOING PARTNER IS SHABBIR KHAN AS HE IS RETIRRING
DUE TO HIS HEALTH ISSUES
3) INSOLVENCY PARTNER:
Insolvency partner is a partner whose individual assets are less
than his own liabilities. Like Saad has unable to contribute their
assets during their business. So, that is the insolvent partner.
N) EXPULSION OF PARTNER
There are two types:
1) Regular Expulsion.
2) Irregular Expulsion.
A partner may not be disqualified from a firm by any
mainstream of the partner, save in the exercise good reliance of
powers deliberated by contract between the partner. In
between some reason they have expelled the other partners.
Specially in this firm there is no rights to expel the other
partners.
O) Dissolution of Partnership
Firm is a process in which relationship between partners of firm
is dissolved or terminated. If a relationship between all the
partners of firm is dissolved then it is known as dissolution of
firm. In case of dissolution of partnership of firm, the firm
ceases to exist. This process includes the discarding and
disposing of all the assets of firm or and settlements of
accounts, assets, and liabilities.
Causes of Dissolution of Partnership Firm:
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Dissolution by Agreement.
Dissolution by Notice.
Insolvency of Partners.
Commitment to Illegal Business.
Death of a Partner.
Expiry of Term.
Completion of Work or Contract.
Resignation of Partner.