Question

    What is the liability of a partner towards the firm for

    any loss caused to the firm by the fraud on the part of the partner in the conduct of the business of the firm as laid down under the Partnership Act?
    A Duty to indemnify Correct Answer Incorrect Answer
    B Duty of warranty Correct Answer Incorrect Answer
    C Duty of guarantee Correct Answer Incorrect Answer
    D Duty to take the liability Correct Answer Incorrect Answer
    E As may be mutually agreed upon by the partners Correct Answer Incorrect Answer

    Solution

    Section 10. Duty to indemnify for loss caused by fraud: Every partner shall indemnify the firm for any loss caused to it by his fraud in the conduct of the business of the firm.

    Practice Next
    More Administrative Interpretation and Maxims Questions

    Relevant for Exams:

    ask-question