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Unit 10: Law of Partnership Act

10.9 Review Questions Notes

1. (a) What is a partnership? (b) Briefly state special features of a partnership on the basis of
which its existence can be determined under the Indian Partnership Act?

2. (a) Explain the procedure for getting a partnership firm registered. When is such a

registration treated as complete? (b) State the effects of non-registration of a firm. (c) What
are the advantages of registration of a partnership fi rm?
3. Explain the following: (i) Partner by holding out, or by estoppel. (ii) Dormant or sleeping
partner. (iii) Nominal partner. (iv) Sub-partner. (v) Working partner. (vi) Incoming partner.
(vii) Outgoing partner. (viii) Limited partnership.
4. What are the provisions of the Indian Partnership Act with regard to the admission of a
minor into the partnership? What will be his rights and liabilities during his minority and
after he has attained the majority?

5. Enumerate the rights and duties of partners inter se.
6. What is meant by the implied authority of a partner to bind the firm? State the acts of a

partner for which he does not have the implied authority to bind the fi rm.
Answers: Self Assessment

1. False 2. True

3. False 4. True
5. True 6. False
7. False 8. False
9. True 10. True
11. Remuneration 12. partnership

13. Sec.40 14. Register of fi rms
15. supplied

10.10 Further Readings

Books G. Vijayaragavan Iyengar (2007), Introduction to Banking, Excel Books, New Delhi,
India.
S.S Gulshan, Business Law, Third Edition, 2006, Excel Books, New Delhi.

S.S Gulshan, Mercantile Law, Third Edition, 2006, Excel Books, New Delhi.

Online links http://www.dateyvs.com/gener04.htm
http://www.mp.gov.in/registrarfi rms/IPA1932English.pdf
http://www.lawcom.gov.uk/docs/cp159sum.pdf

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