Partnership Act Test - 3

Option (1) is incorrect: Partnership firm is not a legal firm in the eyes of law, so there cannot be a partnership between two partnership firms.
Option (2) is incorrect: There cannot be a partnership with a partnership firm.
Option (3) is correct: Partnership between individual members of one firm and the individual members of another firm is a valid partnership.
Option (4) is incorrect: Option (3) is correct.

Option (1) is incorrect: The suit is not maintainable with the leave of the court.
Option (2) is incorrect: The suit is maintainable with the concurrence of X.
Option (3) is correct: The suit is liable to be rejected under Section 69 of the Partnership Act because under Section 69 of the Act, an unregistered partnership cannot bring a suit against any person.
Option (4) is incorrect: The suit will not become maintainable.

Option (1) is incorrect: Every act of partner is not called 'act of firm'.
<span style="font-family:" arial;="" font-size:="" small;="">Option (2) is correct: The only act which gives rise to a right enforceable by or against the firm is called 'act of firm'.
<span style="font-family:" arial;="" font-size:="" small;="">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'.
<span style="font-family:" arial;="" font-size:="" small;="">Option (4) is incorrect: Only 2 is correct.

Option (1) is incorrect: A partnership firm is not a distinct entity from its partners.
Option (2) is incorrect: A partnership firm is not an independent juristic person.
Option (3) is correct: A partnership firm is an agent of its partners.

Option (3) is correct: An allegation of fraud by a third party does not amount to misconduct by a partner.

Option (1) is incorrect: Z cannot sue A, B, C and X jointly.
<span style="font-family:" arial;="" font-size:="" small;="">Option (2) is incorrect: Z can sue either A, B and C or A, B and X.
<span style="font-family:" arial;="" font-size:="" small;="">Option (3) is correct:  Every partner is liable jointly with all the other partners and also severally, for all acts of the firm done, while he is a partner. Z can sue either A, B and C or A, B and X.
<span style="font-family:" arial;="" font-size:="" small;="">Option (4) is incorrect: Z cannot sue A and B only.

Option (1) is correct: A public notice is not required in case of insolvency and death of a partner.

Option (1) is incorrect: Under Section 44 of the Partnership Act, either a partner or a court itself can ask for dissolution of firm in case of misconduct by a partner.
<span style="font-family:" arial;="" font-size:="" small;="">Option (2) is incorrect: Under Section 44 of the Partnership Act, either a partner or a court itself can ask for dissolution of firm in case of insanity of partner.
<span style="font-family:" arial;="" font-size:="" small;="">Option (3) is correct: The completion of venture is a contingent event, which results in dissolution of a firm.
<span style="font-family:" arial;="" font-size:="" small;="">All other options are the cases when a court orders for dissolution of firm.
<span style="font-family:" arial;="" font-size:="" small;="">Option (4) is incorrect: Under Section 44 of the Partnership Act, either a partner or a court itself can ask for dissolution of firm, in case of persistent breach of agreement by a partner.

Option (4) is correct: The reconstitution of a firm does not take place when there is a change in the profit sharing ratio.

Option (1) is incorrect: The dissolution of partnership between all the partners of a firm is called the dissolution of a firm.
Option (2) is correct: A change in relations between the partners is called dissolution of partnership.

Option (1) is incorrect: In the absence of any usage or custom of trade to the contrary, a partner has implied authority to buy or sell goods on account.
<span style="font-family:" arial;="" font-size:="" small;="">Option (2) is incorrect: In the absence of any usage or custom of trade to the contrary, a partner has implied authority to borrow money for the purposes of the firm.
<span style="font-family:" arial;="" font-size:="" small;="">Option (3) is correct: Under Section 19(2) of the Act, the implied authority of a partner does not empower him to enter into partnership on behalf of the firm.
<span style="font-family:" arial;="" font-size:="" small;="">Option (4) is incorrect: In the absence of any usage or custom of trade to the contrary, a partner has implied authority to engage a lawyer to defend actions against the firm.

Option (1) is correct: An outgoing partner does not have a right to use the name of the firm. The other rights are available to him unless there is a contract to contrary.

Option (4) is correct: All the options are correct and this is on partners will on how to proceed. There is no such law that D being C’s father, who has murdered B, can join the firm. It completely depends on existing partner’s (A) will.

Option (1) is correct: Since the existence of a sleeping partner is not known to the outside world, so it is not necessary for to give a public notice of his retirement. In all the other cases, a public notice is required.

Option (1) is incorrect: The Indian Partnership Act, 1932 is applicable on partnership firms and Limited Liability Partnership Act, 2008 is applicable on LLPs.
<span style="font-family:" arial;="" font-size:="" small;="">Option (2) is incorrect: The provisions of the Indian Partnership Act, 1932 does not apply to limited liability partnerships.
<span style="font-family:" arial;="" font-size:="" small;="">Option (3) is correct: The provisions of the Indian Partnership Act, 1932 are not applicable to LLPs, except whereas provided by law.
<span style="font-family:" arial;="" font-size:="" small;="">Option (4) is incorrect: No such provision.