Partnership Act | Important Q&A for LLB, LLM, Advocate and All Judicial ...

 

 

Frequently Asked Questions on Partnership Law

Q. 1 Discuss the history of Law of Partnership.

Q. 2 What are the essential elements of partnership ? Distinguish partnership from company.

Q. 3 "The relation of partnership arises from contract and not from status". Discuss.

Q. 4 A, B, C and D different motor owners agree to ply their motors between Delhi and Agra at a fixed fare and to divide the proceeds equally. Are A, B, C, and D partners ? Discuss.

Q. 5 Sharing the profits is only a prima facie evidence of the existence of partnership. The conclusive test is that of mutual agency.

Q. 6 In a memorandum of partnership among A, B and C, it is provided that A will manage the business and will be paid Rs. 2000 P.M. but shall have no share in profits of the firm. In a suit for dissolution, A declines any liability for losses and asserts that he was not partner in the firm. Determine the validity of plea raised by him.

Q. 7 Undivided member of Hindu Undivided Family formed a partnership with the karta of same Hindu Undivided Family for carrying on business of mechanical engineering and to divide its profit equally. Contribution of his labour and skill was to be his share in the capital of the firm. State if these facts constitute a valid partnership satisfying the requirement of law in this connection.

Q. 8 (a) What do you understand by "Partnership-at will" and how can if be dissolved ?

(b) A and B enter into a partnership by a written agreement providing that the partnership is to be dissolved by mutual arrangement only. Discuss whether a partnership is "Partnership at will".

Q. 9 What do you understand by a "particular partnership"?

Q. 10 Discuss the mutual rights and liabilities of partners inter se.

Q. 11 What do you understand by `Property of a firm' ? Can a partner use the partnership property for his own private purpose and carry on competing business ?

Q. 12 `A' owner of a cinema hall entered into partnership with `B' for business of exhibiting films. Films of partnership were continuously exhibited in said cinema hall. In the account books the said cinema hall was never shown as property of partnership. In a suit for rendition of accounts `B' claimed the said cinema hall as partnership property, which claim was disputed by `A'. Decide.

Q. 13 What is the effect of change in constitution on a firm of the rights and duties of partners ?

Q. 14 Discuss the implied authority of a partner.

Or

What are the limitations on the implied authority of a partner in a firm ? When such authority is automatically extended and upto what extent ?

Q. 15 `X' and `Y' are partners in a trading firm. X borrows Rs. 9000 from P and executes a pronote in the name of the firm. `X' spends the money in purchasing a plot of land in his own name for his personal purposes. Can P hold Y also liable for debt ? Give reasons.

Q. 16 `A' executed a promissory note describing himself as `Proprietor, M/s Arora and Sons' in favour of `B'. B filed the suit for recovery of amount on the basis of said promissory note against partnership firm M/s Arora and Sons and its two partners including `A'. Plea was taken that the firm and other partner were not liable to pay the amount. Decide.

Q. 17 Discuss the effect of following on Partnership firm :-

(a) An admission made by Partner

(b) Torts and Wrongs done by Partner

(c) Misappropriation Committed by Partner

Q. 18 Explain the doctrine of Holding Out.

Q. 19 Explain briefly the position of a transferee of partner's share in the firm.

Q. 20 Can a minor be admitted as partner of firm ? If so can he subsequently ratify or revoke such partnership ? Describe the rights and liabilities of such partner.

Q. 21 When can a new partner be introduced in a firm ? What are the liabilities of such an incoming partner ?

Q. 22 A, B and C are partners in a firm. C retires from the firm under agreement with A and B that all assets and liabilities of the firm will be of A and B. `D' a creditor of the firm sues A, B and C. C refers to the agreement with A and B and denies liability to D. Discuss the liability of C.

Q. 23 Discuss the modes of retirement of partner from a firm and also the liability, Rights of retiring partner.

Q. 24 A, B and C are partners. C is a sleeping partner who has not been known to creditors as partner of A and B. C retires without giving public notice of his retirement. Is C liable for debts incurred by A and B subsequent to his retirement ? Decide with reasons.

Q. 25 Discuss briefly the modes of dissolution of partnership firm.

Q. 26 Comment on the statement that "Dissolution involves change in relations of partners but does not end partnership."

Q. 27 A and B are partners. A becomes bankrupt. B continues to carry on the trade of the firm and pays partnership money into a bank to meet current bills of firm. The bank claims money against the receiver in bankruptcy. Decide.

Q. 28 A and B enter into a partnership for period of 15 years. B pays a sum of Rs. 16000 to A as premium. Long before the expiry of 15 years, A is adjudged bankrupt. B claims refund of proportionate premium which he has paid to A. Decide.

Q. 29 A and B were partners, the latter being the managing partner. The partnership was dissolved and its winding up devolved on B. Part of assets consisted of bales of cotton. `A' requested `B' to sell these bales immediately. B delayed in selling them with the result that they were ultimately sold at much lower price that they would have fetched if sold when `A' desired. `A' contended that the loss sustained by the postponement of sale ought to be borne by B alone. Decide.

Q. 30 In the year 1970 Ram and Shyam entered into a partnership. They agreed that if any one of them died, the firm would not be dissolved but the eldest child of the deceased partner would be taken as partner in the firm. Shyam died in 1975. His son Kumar was taken as the partner. In the year 1976, they applied for registration of firm with Income Tax authorities but I.T.O. refused to register their firm on the ground that on the death of Shyam, firm was dissolved, Ram and Kumar cannot be treated as partners. Ram relied on Sections 42(c) and 31 of Partnership Act. Do these provisions help for registration of firm ?

Q. 31 A and B were partners in a registered firm. On the death of B his son C was inducted in the firm and this fact was not notified to the Registrar of firms. In a suit filed by the firm against `X' a debtor of the firm, it was contended that the firm was not validly registered. `A' immediately thereupon notified to the Registrar the induction of C in the firm in place of his father B. Is the suit filed by the firm prior to the intimation of change in the constitution of partnership to the Registrar, maintainable ?

Q. 32 Examine the correctness of the following statement:

"Registration of firm though not compulsory is practically necessary."

Q. 33 Can unregistered dissolved partnership firm bring a suit for recovery of price of goods supplied on the basis of a contract made before dissolution ?

Q. 34 `A', `B' and `C' are partners in an unregistered firm. A is wrongfully expelled from the firm by `B' and `C'. `A' files a suit against `B' and `C' for declaration that he has been wrongly expelled from the firm and that he continues to be partner in the firm. How will you decide?