New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    If a partner commits wrongful acts within course of

    business of the firm, who shall be liable?
    A Entire firm. Correct Answer Incorrect Answer
    B Partner only. Correct Answer Incorrect Answer
    C Designated partners. Correct Answer Incorrect Answer
    D Both B and C Correct Answer Incorrect Answer
    E Only those partners who have in any way contributed to the wrongful or benefitted from wrongful gain. Correct Answer Incorrect Answer

    Solution

    As per s.26 of The Indian Partnership Act, 1932, Where, by the wrongful act or omission of a partner acting in the ordinary course of the business of a firm, or with the authority of his partners, loss or injury is caused to any third party, or any penalty is incurred, the firm is liable therefor to the same extent as the partner.

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