Indian Partnership Act MCQ question and answer

11

Which of the following section of Indian Partnership Act. 1932 deals with the doctrine of 'Holding Out'

A) Section 24 B) Section 28 C) Section 29 D) Section 30

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Answer & Solution

Answer: Option B

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12

Under section 37(2) of the Indian Partnership Act, 1932, on exercise of option to purchase the share of the outgoing partner under an agreement between the partners resulting in the right of the outgoing partner to receive the share of profits or interest on the unpaid capital to cease, such right of the outgoing partner

A) Can be revised at the option of the outgoing partner at any time B) Can be revived in case default is made by the opting partners in fulfilling the terms of the agreement C) Cannot be revised under any circumstances D) Either (A) or (B)

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Answer & Solution

Answer: Option B

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13

A partnership contract based on fraud or misrepresentation is

A) Valid B) Voidable at the instance of the victim of fraud or misrepresentation C) Voidable at the instance of any of the partners D) Void

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Answer & Solution

Answer: Option B

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14

A minor who has been admitted to the benefits of the firm, on an application to have the partners of the firm adjudicated as insolvent

A) Can be adjudicated as insolvent and his share seized by the receiver B) Can be adjudicated as insolvent but his share cannot be seized by the receiver C) Cannot be adjudicated as insolvent but his share can be seized by the receiver D) Cannot be adjudicated as insolvent nor his share can be seized by the receiver

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Answer & Solution

Answer: Option C

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15

According to section 26 of the Indian Partnership Act the firm would be vicariously liable for the wrongful acts ofomission of a partner provided it is

A) Done in the ordinary course of business B) Done with the authority of the partners C) Either (A) or (B) D) Both (A) and (B)

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Answer & Solution

Answer: Option A

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16

Under the proviso to section 50 of the Indian Partnership Act, 1932, the purchase of the goodwill of the firm, on dissolution

A) Is not to account for the personal profits earned after dissolution and before winding up, in the final settlement of accounts B) Is to account for the personal profits earned after dissolution and before winding up, in the final settlement of accounts C) Is to account for the personal profits earned after dissolution and before winding up, in the final settlement of accounts only if the consideration for purchase of goodwill is inadequate D) Can be restrained from using the firm name after dissolution and before the winding up

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Answer & Solution

Answer: Option A

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17

An act done by a person on behalf of the firm beyond the implied authority

A) Cannot be ratified B) Can be ratified expressly C) Can be ratified impliedly by conduct D) Either (B) or (C)

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Answer & Solution

Answer: Option D

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18

Notice to a partner', under section 24 of the Indian Partnership Act, 1932 does not operate as 'notice to the firm' in case

A) Of a fraud on the firm committed by the partner having notice B) Of a fraud on the firm committed by others with the consent of the partner having notice C) Both (A) and (B) D) Neither (A) nor (B)

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Answer & Solution

Answer: Option C

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19

A receiver of the insolvent partner's property in the partnership

A) Can claim exclusive possession of the assets of the partnership B) Becomes a joint tenant C) Becomes a tenant in common D) Both (A) and (C)

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Answer & Solution

Answer: Option C

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20

Every Limited Liability Partnership as per the Limited Liability Partnership Act, 2008 shall have at least two Designated Partners (DPs) who are individuals and

A) At least one among them shall be resident in India B) Both of them shall belong to one family residing in India C) Both of them should be non-resident Indians (NRIs) D) Both of them should belong to a single country outside India

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Answer & Solution

Answer: Option A

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Indian Partnership Act MCQ question and answer | Law MCQ question