Section 26 of the same Act deals with the liability of the company as a whole for an act or omission of a partner in the ordinary affairs of the company. Such an act can be done with the authority of other partners and, if such an act causes harm or harm to the third party, the company is held liable to the extent that the partner is held liable. The reason is that such an act or omission, on behalf of the company, is done in a timely manner in the context of the ordinary nature of the business. The company here is a separate entity with powers and can be sued for the loss suffered by a third party. It establishes a relationship between the partner, the company and the third party. The dissolution of a partnership usually occurs when one of the partners is no longer a partner in the company. Dissolution is different from the termination of a partnership and the „liquidation“ of the partnership transaction. Although the resolution of concepts implies an end, dissolution is in fact the beginning of the process that ends a partnership. It is essentially a change in the relationship between the partners. When a partner resigns or a partnership appoints a partner, the partnership is considered legally dissolved. Other grounds for dissolution are the bankruptcy or death of a partner, an agreement to liquidate all partners or an event that makes the partnership transaction illegal. For example, when a partnership operates a gambling casino and gambling later becomes illegal, the partnership is considered legally dissolved. In addition, a partner can withdraw from the partnership and thus cause a dissolution.

However, if the partner resigns in violation of a social contract, the partner may be held liable for the damage caused by the early resignation or not. The extension and limitation of a partner`s authority depends on the existing contract between the parties of the company. However, a partner may continue to act under its own responsibility if it has explicit power from a partner, either through an agreement or if the use or custom of trade allows it. Under Section 30 of the Partnership Act of 1932, a person recognized as a minor by law cannot be a partner of the law firm, but the minor may obtain the benefits of the partnership with the agreement of all the partners of the company. Minors are considered unsuitable to be able to make decisions by the law itself. When a minor is admitted in partnership, he is responsible for his shares in the partnership, but not for his actions.