The Liabilities of Partners and Minor Partners in Partnership Firms

Only available on StudyMode
  • Download(s) : 909
  • Published : April 2, 2013
Open Document
Text Preview
Every partner has some rights in the partnership firm and in the same manner; each partner is liable jointly and severally for all the acts of the firm done by him while he is a partner in a partnership firm. The firm is liable to the same extent as the partner, for the loss or injury caused to any third party or any penalty is incurred, by his wrongful act or omission of a partner acting in the ordinary course of a business of the firm or with the authority of his partners. When a firm acting within the apparent authority receives money or property from a third person and misapplies it, the firm is liable to make good the loss. When it comes to partnership, a minor cannot become a partner; however, with the consent of all the partners for the time being, he may be admitted to the benefits of the partnership firm. Like the senior partners, the minor partner has also some rights and he has the right to such share of the property and of the profits as agreed upon. He can have access to and inspect and copy any of the accounts of the firm. A minor is not personally liable; however, such minor's share is liable for the acts of the firm. Such minor, on attaining majority, has an option in continuing as a partner or of severing his connection with it. The minor is eligible to exercise this option during the course of election. When it comes to the period of notice to be given for issuing such notice, such notice has to be given within six months of attaining the majority or knowledge of admission to the benefits of partnership firm. When the minor fails to give such notice within a period of six months, automatically he becomes a partner at the end of six months. The minors are having some liabilities after becoming a partner on attaining majority and he becomes personally liable for all the acts of the firm done since the date of his admission. Moreover, he can impliedly ratify the acts of the firm done during his minority. When it comes to the contributions made by...
tracking img