Multiple choice

A partner can transfer his interest to an outsider with the consent of all other partners.

  1. True

  2. False

  3. Partly true

  4. Cannot say
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Under Section 29 of the Indian Partnership Act 1932, a partner can transfer their interest in the firm to an outsider, but this requires the consent of all other partners. This is because partnership is based on mutual confidence, and introducing a new partner affects the relationship. The remaining partners can choose to dissolve the firm instead of accepting the transfer. The answer True is correct.

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