Multiple choice

Under the Partnership Act 1932, which of the following is not true regarding the theory of facet relocation?

  1. Change occurs in the constitution of the firm

  2. Continues to carry on business after the expiry of fixed term

  3. Carries out more undertakings

  4. Admits any liability in a suit against the firm

  5. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A partner in a partnership firm cannot admit any liability in a suit against firm without an expressed authority. Here it doesn’t fall under the concept of facet relocation.

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