Indian Partnership Act — Part 1 MCQs with Explanations

Option A: A minor may be admitted to the benefits of partnership with the consent of majority of partners Explanation in HTML format: According to the Indian Partnership Act, 1932 , a minor cannot become a full partner in a firm, but can be admitted to the benefits of partnership . Section 30 of the Act states that a minor may be admitted to the benefits of partnership only with the consent of all the partners , not just the majority. Hence, Option A is incorrect because it wrongly states that majority consent is sufficient. Option B is correct because unanimous consent is required. Option C is correct because a minor is not personally liable for the debts of the firm. Option D is also correct as the minor is entitled to receive only the share of profits as agreed upon. Therefore, the correct answer is Option A.

Liability of a partner for the acts of the firm is the correct answer to “Section 25 of the Indian Partnership Act, 1932, provides for”. This question is standard in competitive examination syllabi for Indian Partnership Act.

Out of profits only is the correct answer to “Where a partner is entitled to interest on the capital subscribed, such interest is payable”. This question is standard in competitive examination syllabi for Indian Partnership Act.

Only (A) and not (B) is the correct answer to “Section 44(g) of the Indian Partnership Act, 1932, is to be regarded as”. This question is standard in competitive examination syllabi for Indian Partnership Act.

Suit for contributions in respect of moneys borrowed by him under an express agreement with them for the purposes of partnership is the correct answer to “Which of the following suits can be maintained by one partner against the other partner during the subsistence of partnership without praying for dissolution”. This question is standard in competitive examination syllabi for Indian Partnership Act.

To interfere in the conduct of business is the correct answer to “Which of the following rights is not available to the transferee of a partners' interest in the firm”. This question is standard in competitive examination syllabi for Indian Partnership Act.

He is personally liable for the acts of the firm is the correct answer to “Which of the following is not correct about a minor”. This question is standard in competitive examination syllabi for Indian Partnership Act.

The share of the partner in the partnership property, after payment of firm debts, shall be applied for payment of separate debts of a partner is the correct answer to “Under section 49 of the Indian Partnership Act, 1932”. This question is standard in competitive examination syllabi for Indian Partnership Act.

Lloyd v. Grace Smith & co. is the correct answer to “Which of the following cases recognized the rule of vicarious liability of the firm for the wrongful acts or omissions of the partner done in the ordinary course of business.”. This question is standard in competitive examination syllabi for Indian Partnership Act.

Represents himself to be a partner of the firm is the correct answer to “A person is liable as a partner of a firm, on the principle of holding out, where he”. This question is standard in competitive examination syllabi for Indian Partnership Act.

Both A and B is the correct answer to “In a 'Partnership will'”. This question is standard in competitive examination syllabi for Indian Partnership Act.

Entitled to a share in the goodwill is the correct answer to “Where a partnership is dissolved by the death of a partner, in the absence of a provision expressly meant and clearly implied, a legal representative of the deceased partner is”. This question is standard in competitive examination syllabi for Indian Partnership Act.

Registrar of Firms is the correct answer to “Alterations in partnership deeds are to be brought to notice of”. This question is standard in competitive examination syllabi for Indian Partnership Act.

Section 28 is the correct answer to “Which of the following Sections defines the doctrine of holding out, creating the liability of a 'Non-partner' under Indian Partnership Act”. This question is standard in competitive examination syllabi for Indian Partnership Act.

The suit will be barred against all the parties is the correct answer to “In a suit for partnership accounts, all the partners and the legal representatives should be made parties and if a party is added after the ban of limitation”. This question is standard in competitive examination syllabi for Indian Partnership Act.

Section 30 is the correct answer to “The position of a minor is provided under”. This question is standard in competitive examination syllabi for Indian Partnership Act.

Both (A) and (B) is the correct answer to “A Partner of an unregistered Firm cannot sue the Firm or any other Partner of the Firm to enforce a right:”. This question is standard in competitive examination syllabi for Indian Partnership Act.

The estate of the deceased partner is not liable for any act of the firm done after his death is the correct answer to “Where the firm is not dissolved by the death of a partner, under section 35 of the Indian Partnership Act, 1932”. This question is standard in competitive examination syllabi for Indian Partnership Act.

Against the firm is the correct answer to “Section 23 of the Indian Partnership Act, 1932 provides that an admission made by a partner is an evidence”. This question is standard in competitive examination syllabi for Indian Partnership Act.

Either (A) or (B) is the correct answer to “The principle of joint and several liability signifies that for every act of the firm, a partner can be sued”. This question is standard in competitive examination syllabi for Indian Partnership Act.

That if any partner wants to retire from partnership, notice of a certain fixed time will be required before retirement is the correct answer to “A, B and C enter into an agreement for partnership at will. The partnership deed contains the following provisions. Which one of the following provisions of the deed is inconsistent with partnership at will”. This question is standard in competitive examination syllabi for Indian Partnership Act.

Right to receive remuneration is the correct answer to “Which of the following cannot be claimed by a partner as a matter of right”. This question is standard in competitive examination syllabi for Indian Partnership Act.

To restrain any other partner or representatives from carrying on similar business in the firm name is the correct answer to “In absence of a contract between the partners, after a firm being dissolved every partner or his representative has a right”. This question is standard in competitive examination syllabi for Indian Partnership Act.

Three years from the death of the deceased partner is the correct answer to “The period of limitation for a suit by a legal representative of the deceased partner for a share in the assets of the partnership is”. This question is standard in competitive examination syllabi for Indian Partnership Act.

Either (A) or (B) is the correct answer to “The court can order for dissolution of firm under section 44(d) of the Act, where a partner is guilty of”. This question is standard in competitive examination syllabi for Indian Partnership Act.

No, a person is liable as a partner even by holding himself out as a partner of the partnership firm but only to that person who has on the faith of such holding out has given credit to the partnership firm is the correct answer to “A person is liable as a partner of a partnership firm only if he is a partner by an express written contract.”. This question is standard in competitive examination syllabi for Indian Partnership Act.

Yes if there is such a contract between all the partners is the correct answer to “Is a partner entitled to receive remuneration for the conduct of the business of the firm”. This question is standard in competitive examination syllabi for Indian Partnership Act.

The business must be carried on and managed by all is the correct answer to “Which of the following is not true of an Indian partnership”. This question is standard in competitive examination syllabi for Indian Partnership Act.

Six months of attaining majority is the correct answer to “A minor, who has been admitted to the benefits of the partnership, under Section 30(5) of the Indian Partnership Act on attaining majority has to exercise an option, to stay or to leave the firm, within”. This question is standard in competitive examination syllabi for Indian Partnership Act.

Neither (A) nor (B) nor (C) is the correct answer to “Which of the following enactments insist for a written agreement of partnership”. This question is standard in competitive examination syllabi for Indian Partnership Act.

Only 1 and 2 are true is the correct answer to “Assess the truth or falsity of the following statements by picking the right option under the Indian Partnership Act, 1932. Statement I: Consent of all existing partners is generally required for introduction of a new partner into a firm. Statement II: A partner may retire with the consent of all other partners in the firm.”. This question is standard in competitive examination syllabi for Indian Partnership Act.

Business must actively be carried on by all the partners is the correct answer to “Which of the following is not an essential element of partnership”. This question is standard in competitive examination syllabi for Indian Partnership Act.

Duty of the partners is the correct answer to “Section 15 of the Indian Partnership Act is a statement of a”. This question is standard in competitive examination syllabi for Indian Partnership Act.

On the date on which order of adjudication in this regard is passed by a court of law is the correct answer to “Where a partner becomes insolvent he ceases to be the partner in the firm”. This question is standard in competitive examination syllabi for Indian Partnership Act.

When the partners enter into an agreement to create a partnership firm for conduct of a business is the correct answer to “Partnership firm is created:”. This question is standard in competitive examination syllabi for Indian Partnership Act.

Section 17 of the Indian Partnership Act is the correct answer to “The rule of facit relocation is contained in”. This question is standard in competitive examination syllabi for Indian Partnership Act.

Rights of the buyer and seller of the goodwill is the correct answer to “Section 55(2) of the Indian Partnership Act, 1932 provides for”. This question is standard in competitive examination syllabi for Indian Partnership Act.

No time limit prescribed is the correct answer to “The changes/dissolution/election of the minor on attaining majority, of a firm, has to be notified to the Registrar within”. This question is standard in competitive examination syllabi for Indian Partnership Act.

A question of fact is the correct answer to “Where a firm is named after the name of a partner, whether the partner intended to act for himself or for the firm, is”. This question is standard in competitive examination syllabi for Indian Partnership Act.

Where a suit has been filed without registration, such suit cannot be rectified by subsequent registration is the correct answer to “In Commissioner of Income Tax v. Jaya Lakshmi Rice & Oil Mills, AIR 1971 SC 1015, it has been held”. This question is standard in competitive examination syllabi for Indian Partnership Act.