Multiple choice

The liability of an incoming partner begins from

  1. the date of his joining the firm, i.e. admission

  2. the date when the firm came into existence

  3. the date of his joining the firm, i.e. admission, but he could agree to be liable for the acts of firm done before his admission

  4. the date of his joining the firm, i.e. admission, but he could be made liable for the acts of firm done before his admission when a fraud has been committed by the firm

  5. Both 3 and 4
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A person admitting as a partner into an existing partnership is liable for all the obligations of the partnership arising before his admission as though he had been a partner when such obligations were incurred except that the liability shall be satisfied only out of partnership property.

Keep practicing — related questions