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

    Question

    As per the Indian Partnership Act where a firm

    constituted for a fixed term continues to carry on business after the expiry of that term, the mutual rights and duties of the partners remain the same as they were before the expiry, so far as they may be consistent with the incidents of partnership at will. This provision is designed to ______________
    A Encourage firms to continue beyond their fixed term Correct Answer Incorrect Answer
    B Facilitate an easy dissolution of the firm Correct Answer Incorrect Answer
    C Impose additional restrictions on partners after the fixed term Correct Answer Incorrect Answer
    D Preserve the existing rights and duties of partners after the fixed term Correct Answer Incorrect Answer

    Solution

    Preserve the existing rights and duties of partners after the fixed term, Explanation: Section 17 (b) where a firm constituted for a fixed term continues to carry on business after the expiry of that term, the mutual rights and duties of the partners remain the same as they were before the expiry, so far as they may be consistent with the incidents of partnership at will.

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