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Partnership Law (UGC/ NET)

Covers Indian Partnership Act including dissolution, partners' rights/obligations, minors, registration, and winding up for UGC/NET Law examination

15 Questions Published
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Questions

Question 1 Multiple Choice (Single Answer)

Under Section 42 of the Partnership Act, a firm may be dissolved on the happening of certain contingencies, subject to contract between the partners. Which of the following is not such a contingency?

  1. Expiration of the partnership firm
  2. Completion of business
  3. Death or insolvency of a partner
  4. A partner becoming lunatic
  5. None of these
Question 2 Multiple Choice (Single Answer)

In the case of death of a partner,

  1. when the firm is not dissolved, then the estate of the deceased partner is not liable for any act of the firm done after his death
  2. the position of a deceased partner is the same as that of insolvent partner
  3. no public notice is required to be given on the death
  4. All of the above
  5. None of these
Question 3 Multiple Choice (Single Answer)

Mark the incorrect statement.

  1. A contract of partnership cannot be entered into with a minor.
  2. There can be a partnership consisting of all minors.
  3. A minor is not a partner even if he is so described in the agreement.
  4. A minor could be admitted to the benefits with the consent of all the partners.
  5. None of these
Question 4 Multiple Choice (Single Answer)

A, B and C start a partnership firm. After some time, A dies and other partners continue the business in the firm’s name. Later, the firm becomes insolvent. Who will be liable to the creditors as per Section 28 of the Partnership Act?

  1. B and C alone
  2. B, C and A’s legal heirs
  3. B, C and A’s legal heirs and the estate of A
  4. B, C and A’s estate
  5. None of these
Question 5 Multiple Choice (Single Answer)

In case of insolvency of a partner,

  1. no public notice is needed to terminate his liability
  2. he ceases to be a partner on the date on which the order of adjudication is made, whether or not the firm is thereby dissolved
  3. his position is different from that of a retired or expelled partner
  4. All of the above
  5. None of these
Question 6 Multiple Choice (Single Answer)

Mark the incorrect statement.

  1. A minor cannot be made liable for losses.
  2. A guardian may accept the benefits of a partnership on behalf of a minor without his knowledge.
  3. A minor cannot inspect the books of accounts.
  4. A minor has the right to sue only for accounts and his share, and not for dissolution.
  5. None of these
Question 7 Multiple Choice (Single Answer)

Which chapter of the Partnership Act deals with the registration of partnership firms?

  1. Chapter VI
  2. Chapter VII
  3. Chapter VIII
  4. Chapter IX
  5. Provisions for registration of partnership firms are provided in the Registration Act only.
Question 8 Multiple Choice (Single Answer)

According to Section 30 of the Partnership Act, “at any time within 6 months of his attaining majority or of obtaining knowledge that he had been admitted to the benefits of partnership, whichever date is later, a minor can elect to become or not to become a partner”.

  1. Such option is exercised by giving a public notice.
  2. If he remains silent and fails to give such a notice, then there is a presumption that he wants to be a partner and on the expiry of the 6 months, he shall become a partner in the firm.
  3. If he did not exercise the option, then he will be deemed to become a partner in the firm.
  4. All of the above
  5. No public notice is required according to Section 30 of the Act.
Question 9 Multiple Choice (Single Answer)

Where a minor elects not to become a partner,

  1. his rights and liabilities shall continue to be those of a minor up to the date on which he gives a public notice
  2. his share shall not be liable for any acts of the firm done after the date of notice
  3. he shall be entitled to sue the partners for his share of the property and profits
  4. All of the above
  5. None of these
Question 10 Multiple Choice (Single Answer)

Where a minor elects to become a partner,

  1. he becomes personally liable to third parties for all acts of the firm done since he was admitted to the benefits of partnership
  2. he becomes personally liable to third parties for all the acts of the firm done since the date of his attaining majority
  3. he becomes personally liable to third parties for all the acts of the firm done since the date of his becoming a partner
  4. he does not become personally liable at all to third parties
  5. None of these
Question 11 Multiple Choice (Single Answer)

Representation under Section 28 of the Partnership Act by a person to be a partner of a firm

  1. may be by words spoken or written or by conduct
  2. should be made by himself or knowingly permitted by him to be made by someone else
  3. should be in the knowledge of the person acting on its faith and believed by him to be true
  4. All of the above
  5. None of these
Question 12 Multiple Choice (Single Answer)

Section 29 of the Partnership Act lays down the rights of the transferee of a partner’s interest. Which of the following is/are inclded in these rights?

  1. Right to be a partner in the firm
  2. Right to interfere in the conduct of the business of the firm
  3. Right to inspect the books of the firm
  4. Right to receive the share of profits of the transferring partner
  5. All of the above
Question 13 Multiple Choice (Single Answer)

Winding up of a business involves

  1. realising the assets of the business
  2. paying its liabilities
  3. distributing the surplus, if any, among the partners
  4. All of the above
  5. Both (1) and (2)
Question 14 Multiple Choice (Single Answer)

Which of the following is/are not the effect(s) of non-registration of a partnership firm?

  1. A person suing as a partner cannot sue the firm or co-partners.
  2. A partner cannot sue for dissolution of the firm or for accounts of a dissolved firm.
  3. The firm cannot sue a third party to enforce a right arising from a contract.
  4. The firm cannot claim a set off in a proceeding instituted against the firm.
  5. All of the above
Question 15 Multiple Choice (Single Answer)

Mark the incorrect statement.

  1. For an effective registration, it is not necessary that the firm be a going concern at the time of registration.
  2. A firm may get registered at any time after the creation of partnership.
  3. There is no period of limitation either for the original registration or recording of subsequent changes.
  4. The registration under the Partnership Act involves only the registration of certain particulars as distinguished from the registration of a document under the Registration Act.
  5. None of these
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