Multiple choice

Which of the following is not correct?

  1. Partner of firm cannot enter into a contract with the partnership firm.

  2. A member of a company can enter into a contract with the company.

  3. Partner of a firm can enter into a contract with the partnership firm.

  4. All of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The question asks 'which is NOT correct' - meaning which statement is false. Option A states 'Partner of firm cannot enter into a contract with the partnership firm' - this is FALSE because partners CAN contract with their firm. Unlike company directors who face restrictions, partners have the capacity to enter into contracts with the partnership. Options B and C describe what IS legally possible. A is the correct answer because it's the statement that's incorrect.

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