Multiple choice

Viru, Yuvi and Rohit were partners in a firm. During the course of business, the firm ordered a Lathe Machine with Amrit Mechanicals Ltd. After the order was placed, but before machinery was delivered, Rohit expired. Thereafter, the remaining partners became insolvent, and the firm was unable to pay for the machine. Which of the following is true?

  1. Rohit's estate will be liable for the price of the machine.

  2. Rohit's estate will not be liable for the price of the machine.

  3. Amrit Mechanicals Ltd. will be liable for the price of the machine.

  4. Yuvi’s estate will be liable for the price of the machine.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Rohit's estate will not be liable for the price of the machine as order was not placed on personal behalf of Rohit.

Keep practicing — related questions