Explanation:

The relation of partners is based upon mutual confidence and trust and obviously therefore no person may be introduced as a partner in the firm without the consent of all the existing partners. Thus no partner can assign his share in a way which may substitute On outsider in his place. If a partner transfers whole of his interest in the firm to a third party, the other partners may apply to the court for dissolution of the firm. But a partner can transfer his right of interest(right to receive share in profits) in the business of the firm in favor of a third party. But such transferee does not become entitled to interfere in the conduct of business, nor can he inspect the books of the firm. He is bound to accept the acco tint profits agreed to by the partners.