📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    Where, by the wrongful act or omission of a partner

    acting in the ordinary course of the business of a firm, loss or injury is caused to any third party
    A The firm is not liable Correct Answer Incorrect Answer
    B Other partners may remove the wrongdoers from partnership Correct Answer Incorrect Answer
    C the firm is liable to the same extent as the partner Correct Answer Incorrect Answer
    D All the partners are liable Correct Answer Incorrect Answer
    E The partnership is terminated Correct Answer Incorrect Answer

    Solution

    Constitution Section 26 of Indian Partnership Act Liability of the firm for wrongful acts of a partner.—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.

    Practice Next
    More Administrative Interpretation and Maxims Questions

    Relevant for Exams:

    ask-question