Determination of rights and duties of partners by contract between the partners

Determination of rights and duties of partners by contract between the partners.--(1) Subject to the provisions of this Act, the mutual rights and duties of the partners of a firm may be determined by contract between the partners, and such contract may be express or may be implied by a course of dealing.

Such contract may be varied by consent of all the partners, and such consent may be express or may be implied by a course of dealing.

1. (2) Arrangements in restraint of trade.--Notwithstanding anything contained in section 27 of the Contract Act, 1977, such contracts may provide that a partner shall not carry on any business other than that of the firm while he is a partner.