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Law · Q248

Indian Partnership Act

Graduate and Post Graduate · Law · question 248

Q248

Which of the following is not a true statement regarding minor's admission to partnership in a firm?

A.
A minor may be admitted to the benefits of partnership with the consent of majority of partners
Answer
B.
A minor may be admitted to the benefits of partnership with the consent of all the partners
C.
A minor is not personally liable for any act of the firm
D.
A minor has a right to such profits as agreed upon

Answer: Option A

Solution

Answer: Option A
Solution:
Option A: A minor may be admitted to the benefits of partnership with the consent of majority of partners Explanation in HTML format: According to the Indian Partnership Act, 1932, a minor cannot become a full partner in a firm, but can be admitted to the benefits of partnership.

Section 30 of the Act states that a minor may be admitted to the benefits of partnership only with the consent of all the partners, not just the majority.

Hence, Option A is incorrect because it wrongly states that majority consent is sufficient.

Option B is correct because unanimous consent is required.

Option C is correct because a minor is not personally liable for the debts of the firm.

Option D is also correct as the minor is entitled to receive only the share of profits as agreed upon.

Therefore, the correct answer is Option A.