Multiple choice

An outgoing partner may carry on a business competing with that of the firm and he may advertise such business, but subject to contract to the company, he may not

  1. use the firm name

  2. represent himself as carrying on the business of the firm

  3. solicit the custom of persons who were dealing with the firm before he ceased to be a partner

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Under Section 36 of the Partnership Act, an outgoing partner may carry on a business competing with that of the firm and he may advertise such business, but subject to contract to the company, he may not a) use the firm name, b) represent himself as carrying on the business of the firm, and c) solicit the custom of persons who were dealing with the firms before he ceased to be a partner.   

Keep practicing — related questions