Multiple choice

Which of the following is not a consequence of non-registration of a firm?

  1. No suit by an unregistered firm against a third party

  2. No suit by a partner against the firm for his rights

  3. A firm cannot set-off a claim

  4. Suit by a third party against the firm
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Option (4) is correct: A third party can file a suit against an unregistered firm for a breach in contract. However, all the other consequences are applicable to an unregistered firm.

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