Local Government in Ancient India c9.92

c9.92

Partnerships are known to the Smṛti works of Nārada and Bṛhaspati, which lay down the laws regulating them. The loss, expenses, and profits of the business are to be shared by each partner according to the share contributed by him to the joint-stock¹ (*Nārada*, III. 1. 3–4²; *Bṛhaspati*, XIV. 3–4¹). A partner is responsible for any loss due to his want of care or any action without the assent, or against the instructions, of his co-partners (*Nārada*, III. 5²; *Bṛhaspati*, XIV. 9).³ Similarly, he is entitled to a special remuneration for special profit gained through his individual action (*Nārada*, III. 6⁴; *Bṛhaspati*, XIV. 10⁵). A contract executed by one is binding on all (*Bṛhaspati*, XIV. 5).⁶ The partners are to be judges and witnesses in deciding their own disputes (6). The honesty of partners is to be proved by oath or ordeal (7). In case of death of a partner his goods must be shown and delivered to officers appointed by the king for safe custody until his legally proved heir claims them (11. 12). The king takes ⅙, 1/9, and 1/12 of