Partnership and Business Law

Under section 34 of Partnership Act, where a partner in a firm is adjudicated, 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.

Modes of dissolution of a firm are as follows: a) Compulsory dissolution under section 41 b) Dissolution by notice of partnership at will under section 43 c) Dissolution on the happening of certain contingencies under section 42   

Section 42 of the Partnership Act states dissolution on the happening of certain contingencies. Subject to contract between the partners, a firm is dissolved a) if constituted for a fixed term, by the expiry of that term, b) if constituted to carry out one or more adventures or undertakings by the completion thereof, c) by the death of a partner, and d) by the adjudication of a partner as an insolvent.

A limited liability partnership is a partnership in which some or all partners have limited liabilities. A limited liability partnership (LLP) is a partnership in which some or all partners (depending on the jurisdiction) have limited liabilities. It therefore exhibits elements of partnership. In an LLP, one partner is not responsible or liable for another partner's misconduct or negligence. In an LLP, some partners have a form of limiled liability similar to that of the shareholders of a corporation.

This statement is definitely not true. In the absence of any deed, the profits are divided equally.

This is the correct answer as it is borne in profit sharing ratio.

This is the correct answer. It should not appear in partner's capital account.

This is correct answer. The amount so realised should be credited to all the partners.

The term "Illegal Association" is defined only in Companies Act. So option(2) is correct.

In all the given cases, a partnership firm gets compulsorily dissolved.

Existence of an agreement is essential of partnership. Such an agreement between the partners may be express or implied. Further, the agreement should be valid and must be for a lawful object, purpose and between the persons competent to contract.

Mutual Agency is the true test of partnership.

Option (2) is correct: As long as a minor is a partner, he cannot sue the other partners.

This principle is an important element within a contract of insurance. It means that the insured must have an interest in the subject matter of the insurance. In a practical sense, this means that the insured must suffer a financial or economic loss. This also means that the interest in the property must be a real one and not a contrived one. Tenant is a person who occupies land or property rented from a landlord. So, 'insurable interest' does not lie with the person.

Consolidation is the joining of several business units or several different companies into a larger organisation. Business consolidation is used to improve operational efficiency by reducing redundant personnel and processes. It is most often associated with mergers and acquisitions. Business consolidation can result in long-term cost savings. In the short-term, it can be expensive and complex.