Partnership and Business Law

Minors (under 18) cannot be full partners in a partnership firm. Option A has both minors (16 and 17). Option B has a 17-year-old minor. Option C has a 17-year-old minor. Even if they only share profits, minors lack capacity to be partners. Since all options A-C involve minors, D (None of these) is correct.

A partnership requires mutual agency, shared profits, and agreement to conduct business - all essential elements must co-exist from the moment the partnership is formed. They cannot be brought in later; the partnership is not valid until all elements are present simultaneously.

Under the Indian Partnership Act, in absence of agreement, partners are NOT entitled to salary or commission. They can only claim interest on loans and advances made to the firm (at 6% p.a.). Capital ratio determines profit share only if specified in agreement.

Partner by holding out means a person represents themselves as a partner (or allows others to believe so), making them liable to third parties who relied on this representation. This is called 'partner by estoppel' in legal terms - they are estopped from denying they are not a partner.

Every partner has a duty to diligently attend to their obligations in conducting partnership business. Rights are what partners are entitled to; duties are what they must do. The sentence correctly refers to duties, not rights, meetings, or capital.

When a new partner is admitted without specific agreement, it's presumed they acquire their share from all old partners in their OLD profit sharing ratio. This is the standard default rule under partnership accounting principles.

Goodwill brought in by an incoming partner is distributed to old partners in their sacrificing ratio, not old or new profit sharing ratios. The sacrificing ratio represents the extent to which each old partner has given up their share in favor of the new partner. Capital ratio is irrelevant to goodwill distribution.

General partnership and limited partnership are types of partnerships on the basis of liability.

A person who is represented as a partner and despite knowing this does not deny this impression, is known as a partner by holding out. This is the correct statement.

This is the correct option. A partner of an unregistered firm cannot file a suit against the firm or any of the partners. The firm cannot file a suit against third parties and against one of the partners.

A partnership firm may be dissolved either with the consent of all the partners (as per general principles of contract and partnership law) or in accordance with a contract between the partners that specifies dissolution terms. The Partnership Act, 1932 recognizes both modes of dissolution through Sections 40 to 43, which provide for dissolution by agreement, by notice, or on occurrence of specified events.

Under Section 19 of the Partnership Act, 1932, a partner's implied authority includes acts in the usual course of business such as selling goods, borrowing on behalf of a trading firm, and settling accounts with persons dealing with the firm. However, withdrawing or compromising a suit or proceeding filed on the firm's behalf requires express authority as it is a matter of grave legal significance beyond ordinary business operations.

A partner may cease to be a partner without dissolution of the firm through retirement (with consent), insolvency (which automatically terminates partnership status), or death (which doesn't necessarily dissolve the firm if the partnership agreement provides for continuation). These events affect individual partners but the firm itself can continue surviving the departure of partners.

Under Section 32 of the Partnership Act, 1932, when a minor who was admitted to the benefits of partnership elects to become a partner upon attaining majority, they become personally liable for all acts of the firm done both from the date of attaining majority and from the date they formally become a partner. This dual liability ensures protection for third parties dealing with the firm.

Doctrine of holding out u/s 28 means where a person who is not a partner in a firm may under certain circumstances be liable for the debts as if he were a partner.