Commercial Law Part (12) Past Paper PDF

# SECTION CENTER ## Faculty of Law - English Department ### Since 2005 ### Level (3) ### Term (1) ## COMMERCIAL LAW ### PART (12) ### Ahmed Khashaba ## A Better Future Starts Here ### Find us From the lower road in front of *Al-Ward Island Club*. The street on which the *Bennvenuti* shop is loca...

# SECTION CENTER ## Faculty of Law - English Department ### Since 2005 ### Level (3) ### Term (1) ## COMMERCIAL LAW ### PART (12) ### Ahmed Khashaba ## A Better Future Starts Here ### Find us From the lower road in front of *Al-Ward Island Club*. The street on which the *Bennvenuti* shop is located (first right in the street). From *Al-Gomhori street* in front of *Ibn Lokman school*. The street on which *Asfour El-Jenna shop* and *Khair Cars Showroom* are located. ### 0502230669 # COMMERCIAL LAW PART (12) ## (B) Part in Kind The part in kind is meant to be any assets other than money. This part might be movables or real estates. As for movables, they might be physical such as equipment, tools, goods and the like and they might be moral such as patents, trademarks, trade name and artistic literary rights. But real estates might be a piece or buildings to be the head office of the company. Moreover, the part in kind provided by the partner must be estimated at the time of its provision to specify his part of the company’s capital. Some legislation resort to setting certain restrictions on estimating these parts to avoid overstating their value. Therefore, this is to avoid harming the remaining partners. ## *Distinction Between The Company’s Capital And Assets:-* Distinction between the company’s capital and its assets becomes important. The company’s capital is a fixed and known amount mentioned in the company’s contract and represents the sum of the cash parts and the parts in kind provided by the partners. The company's Capital is just a mathematic value which doesn’t indicate its true position that change in the light of the profits made by the company and the losses incurred by it. Also, this capital is important because it is the basis for the company's financial liability and it is the basis for calculating the profits and losses. The company’s assets are the sum of values owned by the company at a specific time during its existence. They involve all the funds of the company including the capital, reserves, profits and its rights with the third parties. These assets might be equal to the company's capital, more than it (in case of profits) or less than it (in case of losses). ## *Principle Of Fixing The Capital :-* In the principle of fixing the capital, it’s required the existence of a fixed sum of money which represents the general guarantee for the creditors. Also means that the company’s capital must remain fixed and it is prohibited to do otherwise until the termination of the company. Many results stem from the principle of fixing the capital in the following detail:- The untrue profits distributed by the company aren't recognized, because this represents a deduction from the company's capital that represents the general guarantee for creditor and this entitles the creditors to compel the partners to return these funds. The partners may not reduce the company’s capital except through following certain procedures. Therefore, in case these procedures aren’t observed, this reduction isn't recognized against the creditors and this act is considered to be a Crime. In case the company's capital changes, the creditors are entitled to claim directly from the partners the payment of their debts.