When creditors continues to deal with the reconstituted firm after he is informed of the retirement of a partner and the agreement of release, the liability of the retiring partner towards the creditors

When the firm is named after the retiring partner, the retiring partner has a right to

A

Set up a precisely similar business under the same name

B

Set up a precisely similar business but not under the same name

C

Set up a precisely similar business under a new name which suggests a connection with the firm he has left

D

Either (B) or (C)

Every partner is jointly and severally liable for all acts of the firm. However, a minor can be admitted to the benefits of the firm. Liability of a partner is unlimited and he is personally liable for the acts of the firm. The liability of the minor in case of the acts of the firm is

A

Personally liable for such acts

B

Not at all liable for such acts

C

Not personally liable, it is only his share which is liable for the acts of the firm

D

Liable to the extent as it told by other partners

Where a retiring partner has agreed with his co-partners, under which he is released from liability for outstanding debts, his liability to the creditors

A

Comes to an end

B

Still remains

C

Partly comes to an end and partly remains

D

Either (B) or (C)

Propositions as regards the liability of the surety under the surety bond are:
1. The liability of the surety is mutually exclusive of the liability of the accused under his personal bond.
2. The liability of the surety is contingent on the liability of the accused under his personal bond the liability of the surety.
3. is limited to the amount of the surety bond.
Now which of the following is correct

A

1 and 3 are correct

B

1 and 2 are correct

C

2 and 3 are correct

D

1, 2 and 3 all are correct

Which of the following are the consequences in case of insolvency of partner?
1. The partner adjudicated as insolvent ceases to be a partner.
2. He ceases on the date on which the order of adjudication is made.
3. The firm is dissolved on the date of the order.
4. The estate of the insolvent partner is liable for any act of the firm after the date of the order of adjudication.
5. The firm can be held liable for any acts of the insolvent partners after the date of the order of adjudication.
Select the correct answer:

A

Only 5

B

Both 4 and 5

C

3, 4 and 5

D

1, 2 and 3

A retiring partner continues to be liable for obligations incurred after his retirement if

A

Unpaid amount is transferred to his loan account

B

He does not givea public notice

C

He starts a similar business elsewhere

D

In all the situations till he survives

A retiring partner continues to be liable for obligations incurred after his retirement

A

if unpaid amount is transferred to his loan account

B

if he does not give public notice

C

if he starts a similar business elsewhere

D

in all the situations till he survives

A retiring partner continues to be liable for obligations incurred after his retirement:

A

If unpaid amount is transferred to his loan account

B

If he does not give public notice

C

It he starts a similar business elsewhere

D

In all the situations till he survies

A, B and C are partners in a firm. C retires and X admitted as a new partner. The firm did not give a public notice on the change but continued its business in its old firm name. Z, a customer of the firm, deals with the firm after the change and the firm becomes indebted to him:

A

Z can sue A, B, C and X

B

Z can sue A, B and C

C

Z can sue either A, B and C, or A, B and X

D

Z can sue A and B only

Which of the following are correct regarding rights of partners?
1. A partner has the right to allow the admission of a new partner.
2. Every partner has a right to take part in the management of business.
3. Every partner has a joint ownership of partnership property.
4. Every partner has a right to share the profit not the losses with other partners.
5. Every partner has a right to inspect the books of account and have a copy of the same.
6. In case of emergency, a partner has a right to act as a man of prudence.
Select the correct answer:

A

1, 2, 3, 4

B

2, 3, 4, 6

C

3, 4, 5, 6

D

2, 3, 5, 6

When creditors continues to deal with the reconstituted firm after he is informed of the retirement of a partner and the agreement of release, the liability of the retiring partner towards the creditors

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