Page 187 - DMGT407Corporate and Business Laws

Corporate and Business Laws

Notes firm’s business without paying A’s share of assets in the firm. Can A’s official receiver
recover any of the profits made by the firm after A’s insolvency?
13. A and B run a firm of solicitors. C, a client seeks A’s advice on ways to improve her
income. A advises her to bring the title deeds of the property to him. He also obtains C’s
signature on a plain paper which he converts into a sale deed in his favour. Thereafter, he
sells the property and misappropriates the money. Is the firm liable to C for A’s fraud.
14. A, B and C run a partnership firm. The firm orders some machinery from a supplier. After
the placing of order but before actual delivery of machinery, A dies. The machinery is
later on delivered to the firm. In the meantime, the remaining partners become insolvent
and the firm fails to pay. Explain whether A’s private estate is liable for the price of the
machine, and against whom the suppliers of machinery can obtain a decree for the recovery
of price.
15. A and B carry on a banking firm in partnership. A, without B’s knowledge, receives some
money from C and uses the same for his personal benefit. Is the firm liable to make good
C’s money?

Answers: Self Assessment

1. valid contract 2. particular
3. name 4. true

5. partnership deed 6. written
7. agreement 8. goodwill
9. implied 10. sleeping
11. ‘Partnership at Will’ 12. Outgoing
13. dissolution 14. court

15. Limited Liability 16. nominal
17. articles 18. certificate of formation

6.13 Further Readings

Book S S Gupta, Business Law

Online links india.gov.in/allimpfrms/allacts/3167.pdf
www.llp.gov.in/

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