Multiple choice

An act to be called an ‘act of firm’ within the meaning of Section 2(a) of the Indian Partnership Act, 1932 is

  1. every act of partners

  2. only such an act which gives rise to a right enforceable by or against the firm

  3. such an act which does not give rise to a right enforceable by or against the firm

  4. Either (1), (2) or (3)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Option (1) is incorrect: Every act of partner is not called 'act of firm'. Option (2) is correct: The only act which gives rise to a right enforceable by or against the firm is called 'act of firm'. Option (3) is incorrect: The act which does not give rise to a right enforceable by or against the firm is not called 'act of firm'. Option (4) is incorrect: Only 2 is correct.

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