Legal Principle: A characteristic feature of partnerships is the principle of mutual agency, i.e., every partner is an agent for every other partner and will hence be able to bind them by his act, within the business of partnership.Fact Situation : Ram and Shyam are partners of M/s R andamp; S Trading Company which trades in rice varieties.Ram agrees to purchase ten tons of rice from Govind. Ram dies after the rice is delivered to the premises of M/s R andamp; S Trading Company but before the payment of price is made. Is the agreement binding on Shyam?Which of the following statements is the most appropriate in relation to the legal principle stated above?Options:a)Being partners, Ramandrsquo;s agreement to purchase rice for their partnership, is not binding on Shyam.b)Since Ram is no more, the agreement is not binding on Shyam.c)Being partners, Ramandrsquo;s agreement to purchase rice for their partnership, is binding on Shyam.d)The agreement is binding on Ram and not on Shyam since the rice is delivered only to M/s R andamp; S Trading Company and not to Shyam.Correct answer is option 'C'. Can you explain this answer?

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Fact Situation : Ram and Shyam are partners of M/s R & S Trading Company which trades in rice varieties.Ram agrees to purchase ten tons of rice from Govind. Ram dies after the rice is delivered to the premises of M/s R & S Trading Company but before the payment of price is made. Is the agreement binding on Shyam?

Which of the following statements is the most appropriate in relation to the legal principle stated above?
Options:

a)
Being partners, Ram’s agreement to purchase rice for their partnership, is not binding on Shyam.
b)
Since Ram is no more, the agreement is not binding on Shyam.
c)
Being partners, Ram’s agreement to purchase rice for their partnership, is binding on Shyam.
d)
The agreement is binding on Ram and not on Shyam since the rice is delivered only to M/s R & S Trading Company and not to Shyam.

Correct answer is option 'C'. Can you explain this answer?

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Legal Principle: A characteristic feature of partnerships is the princ...

Yes correct option is (c)

Because, Ram & Shyam are partners and according to principle 'every partner is an agent of each other and will able to bind them by there act in the business of partnership' so when Ram dies and rise delivered then by legal principle Shyam should purchase the price of rise.

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Legal Principle: A characteristic feature of partnerships is the princ...

Legal Principle:A characteristic feature of partnerships is the principle of mutual agency, i.e., every partner is an agent for every other partner and will hence be able to bind them by his act, within the business of partnership.Fact Situation:Ram and Shyam are partners of M/s R & S Trading Company which trades in rice varieties. Ram agrees to purchase ten tons of rice from Govind. Ram dies after the rice is delivered to the premises of M/s R & S Trading Company but before the payment of price is made. Is the agreement binding on Shyam?Most Appropriate Statement:C: Being partners, Ram's agreement to purchase rice for their partnership is binding on Shyam.Explanation:The legal principle of mutual agency states that in a partnership, every partner is an agent for every other partner and can bind them by his actions within the business of the partnership. In this case, Ram and Shyam are partners of M/s R & S Trading Company. When Ram agreed to purchase ten tons of rice from Govind on behalf of the partnership, he acted as an agent of the partnership. Therefore, his agreement to purchase the rice is binding on Shyam as well.It is important to note that the death of Ram does not affect the binding nature of the agreement on Shyam. The principle of mutual agency applies regardless of the partner's death. As long as the agreement was made within the scope of the partnership's business, it remains binding on all partners, including Shyam.Therefore, the most appropriate statement is that Ram's agreement to purchase rice for their partnership is binding on Shyam.

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Directions: Read the following passage and answer the question.Indian Partnership Act, 1932 defines persons as partners who have agreed to share profits of the business carried on by all or any of them acting for all. A minor is a person who hasn't yet attained the age of majority, which is eighteen years, according to the Indian Majority Act, 1875.The general principle has been laid down by Section 11 of the Indian Contract Act, 1872, where it is discussed that who is competent to a contract and thereby stating that a minor doesn't have the ability to contract. Under Section 4 of the Indian Partnership Act, a firm means a group of people who has entered into a contract of partnership among themselves and reading it with Section 11 of the Indian Contract Act, it can be interpreted that a minor cannot be a part of a partnership contract.However, the Supreme Court in the landmark judgement of Commissioner of Income Tax v. D. Khaitan and Co. took a legal stand that in a situation where a minor is made a full-fledged partner in the firm, the partnership cannot be registered by the Income Tax Department only.Section 30(2) of the Indian Partnership Act states that a minor is entitled to share of profits and the property of the firm, which may have decided at the time the minor was admitted to the benefits of the partnership. Under this provision, a minor has the right to inspect the accounts of the partnership but to that fact does not have any right to inspect other documents of the partnership.Even in Section 30(3) of the Indian Partnership Act, a minor can only be liable to the extent of his share in the partnership and can't be liable personally to the partnership for the losses of the firm.According to Section 30(5) of the Indian Partnership Act, a minor has two options after attaining majority, either he can sever the connection with the firm or he can become a full-fledged partner in the firm. After leaving, he can avail any pending share of profits he is entitled to.The minor has to make his decision within six months of his attaining majority. Section 7(

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Directions: Read the following passage and answer the question.Indian Partnership Act, 1932 defines persons as partners who have agreed to share profits of the business carried on by all or any of them acting for all. A minor is a person who hasnt yet attained the age of majority, which is eighteen years, according to the Indian Majority Act, 1875.The general principle has been laid down by Section 11 of the Indian Contract Act, 1872, where it is discussed that who is competent to a contract and thereby stating that a minor doesnt have the ability to contract. Under Section 4 of the Indian Partnership Act, a firm means a group of people who has entered into a contract of partnership among themselves and reading it with Section 11 of the Indian Contract Act, it can be interpreted that a minor cannot be a part of a partnership contract.However, the Supreme Court in the landmark judgement of Commissioner of Income Tax v. D. Khaitan and Co. took a legal stand that in a situation where a minor is made a full-fledged partner in the firm, the partnership cannot be registered by the Income Tax Department only.Section 30(2) of the Indian Partnership Act states that a minor is entitled to share of profits and the property of the firm, which may have decided at the time the minor was admitted to the benefits of the partnership. Under this provision, a minor has the right to inspect the accounts of the partnership but to that fact does not have any right to inspect other documents of the partnership.Even in Section 30(3) of the Indian Partnership Act, a minor can only be liable to the extent of his share in the partnership and cant be liable personally to the partnership for the losses of the firm.According to Section 30(5) of the Indian Partnership Act, a minor has two options after attaining majority, either he can sever the connection with the firm or he can become a full-fledged partner in the firm. After leaving, he can avail any pending share of profits he is entitled to.The minor has to make his decision within six months of his attaining majority. Section 7(

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Directions: Read the following passage and answer the question.Indian Partnership Act, 1932 defines persons as partners who have agreed to share profits of the business carried on by all or any of them acting for all. A minor is a person who hasnt yet attained the age of majority, which is eighteen years, according to the Indian Majority Act, 1875.The general principle has been laid down by Section 11 of the Indian Contract Act, 1872, where it is discussed that who is competent to a contract and thereby stating that a minor doesnt have the ability to contract. Under Section 4 of the Indian Partnership Act, a firm means a group of people who has entered into a contract of partnership among themselves and reading it with Section 11 of the Indian Contract Act, it can be interpreted that a minor cannot be a part of a partnership contract.However, the Supreme Court in the landmark judgement of Commissioner of Income Tax v. D. Khaitan and Co. took a legal stand that in a situation where a minor is made a full-fledged partner in the firm, the partnership cannot be registered by the Income Tax Department only.Section 30(2) of the Indian Partnership Act states that a minor is entitled to share of profits and the property of the firm, which may have decided at the time the minor was admitted to the benefits of the partnership. Under this provision, a minor has the right to inspect the accounts of the partnership but to that fact does not have any right to inspect other documents of the partnership.Even in Section 30(3) of the Indian Partnership Act, a minor can only be liable to the extent of his share in the partnership and cant be liable personally to the partnership for the losses of the firm.According to Section 30(5) of the Indian Partnership Act, a minor has two options after attaining majority, either he can sever the connection with the firm or he can become a full-fledged partner in the firm. After leaving, he can avail any pending share of profits he is entitled to.The minor has to make his decision within six months of his attaining majority. Section 7(

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Directions: Read the following passage and answer the question.Indian Partnership Act, 1932 defines persons as partners who have agreed to share profits of the business carried on by all or any of them acting for all. A minor is a person who hasn't yet attained the age of majority, which is eighteen years, according to the Indian Majority Act, 1875.The general principle has been laid down by Section 11 of the Indian Contract Act, 1872, where it is discussed that who is competent to a contract and thereby stating that a minor doesn't have the ability to contract. Under Section 4 of the Indian Partnership Act, a firm means a group of people who has entered into a contract of partnership among themselves and reading it with Section 11 of the Indian Contract Act, it can be interpreted that a minor cannot be a part of a partnership contract.However, the Supreme Court in the landmark judgement of Commissioner of Income Tax v. D. Khaitan and Co. took a legal stand that in a situation where a minor is made a full-fledged partner in the firm, the partnership cannot be registered by the Income Tax Department only.Section 30(2) of the Indian Partnership Act states that a minor is entitled to share of profits and the property of the firm, which may have decided at the time the minor was admitted to the benefits of the partnership. Under this provision, a minor has the right to inspect the accounts of the partnership but to that fact does not have any right to inspect other documents of the partnership.Even in Section 30(3) of the Indian Partnership Act, a minor can only be liable to the extent of his share in the partnership and can't be liable personally to the partnership for the losses of the firm.According to Section 30(5) of the Indian Partnership Act, a minor has two options after attaining majority, either he can sever the connection with the firm or he can become a full-fledged partner in the firm. After leaving, he can avail any pending share of profits he is entitled to.The minor has to make his decision within six months of his attaining majority. Section 7(

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Legal Principle: A characteristic feature of partnerships is the principle of mutual agency, i.e., every partner is an agent for every other partner and will hence be able to bind them by his act, within the business of partnership.Fact Situation : Ram and Shyam are partners of M/s R & S Trading Company which trades in rice varieties.Ram agrees to purchase ten tons of rice from Govind. Ram dies after the rice is delivered to the premises of M/s R & S Trading Company but before the payment of price is made. Is the agreement binding on Shyam?Which of the following statements is the most appropriate in relation to the legal principle stated above?Options:a)Being partners, Ram’s agreement to purchase rice for their partnership, is not binding on Shyam.b)Since Ram is no more, the agreement is not binding on Shyam.c)Being partners, Ram’s agreement to purchase rice for their partnership, is binding on Shyam.d)The agreement is binding on Ram and not on Shyam since the rice is delivered only to M/s R & S Trading Company and not to Shyam.Correct answer is option 'C'. Can you explain this answer?

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Legal Principle: A characteristic feature of partnerships is the principle of mutual agency, i.e., every partner is an agent for every other partner and will hence be able to bind them by his act, within the business of partnership.Fact Situation : Ram and Shyam are partners of M/s R & S Trading Company which trades in rice varieties.Ram agrees to purchase ten tons of rice from Govind. Ram dies after the rice is delivered to the premises of M/s R & S Trading Company but before the payment of price is made. Is the agreement binding on Shyam?Which of the following statements is the most appropriate in relation to the legal principle stated above?Options:a)Being partners, Ram’s agreement to purchase rice for their partnership, is not binding on Shyam.b)Since Ram is no more, the agreement is not binding on Shyam.c)Being partners, Ram’s agreement to purchase rice for their partnership, is binding on Shyam.d)The agreement is binding on Ram and not on Shyam since the rice is delivered only to M/s R & S Trading Company and not to Shyam.Correct answer is option 'C'. Can you explain this answer? for CLAT 2025 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about Legal Principle: A characteristic feature of partnerships is the principle of mutual agency, i.e., every partner is an agent for every other partner and will hence be able to bind them by his act, within the business of partnership.Fact Situation : Ram and Shyam are partners of M/s R & S Trading Company which trades in rice varieties.Ram agrees to purchase ten tons of rice from Govind. Ram dies after the rice is delivered to the premises of M/s R & S Trading Company but before the payment of price is made. Is the agreement binding on Shyam?Which of the following statements is the most appropriate in relation to the legal principle stated above?Options:a)Being partners, Ram’s agreement to purchase rice for their partnership, is not binding on Shyam.b)Since Ram is no more, the agreement is not binding on Shyam.c)Being partners, Ram’s agreement to purchase rice for their partnership, is binding on Shyam.d)The agreement is binding on Ram and not on Shyam since the rice is delivered only to M/s R & S Trading Company and not to Shyam.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for CLAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Legal Principle: A characteristic feature of partnerships is the principle of mutual agency, i.e., every partner is an agent for every other partner and will hence be able to bind them by his act, within the business of partnership.Fact Situation : Ram and Shyam are partners of M/s R & S Trading Company which trades in rice varieties.Ram agrees to purchase ten tons of rice from Govind. Ram dies after the rice is delivered to the premises of M/s R & S Trading Company but before the payment of price is made. Is the agreement binding on Shyam?Which of the following statements is the most appropriate in relation to the legal principle stated above?Options:a)Being partners, Ram’s agreement to purchase rice for their partnership, is not binding on Shyam.b)Since Ram is no more, the agreement is not binding on Shyam.c)Being partners, Ram’s agreement to purchase rice for their partnership, is binding on Shyam.d)The agreement is binding on Ram and not on Shyam since the rice is delivered only to M/s R & S Trading Company and not to Shyam.Correct answer is option 'C'. Can you explain this answer?.

Solutions for Legal Principle: A characteristic feature of partnerships is the principle of mutual agency, i.e., every partner is an agent for every other partner and will hence be able to bind them by his act, within the business of partnership.Fact Situation : Ram and Shyam are partners of M/s R & S Trading Company which trades in rice varieties.Ram agrees to purchase ten tons of rice from Govind. Ram dies after the rice is delivered to the premises of M/s R & S Trading Company but before the payment of price is made. Is the agreement binding on Shyam?Which of the following statements is the most appropriate in relation to the legal principle stated above?Options:a)Being partners, Ram’s agreement to purchase rice for their partnership, is not binding on Shyam.b)Since Ram is no more, the agreement is not binding on Shyam.c)Being partners, Ram’s agreement to purchase rice for their partnership, is binding on Shyam.d)The agreement is binding on Ram and not on Shyam since the rice is delivered only to M/s R & S Trading Company and not to Shyam.Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for CLAT. Download more important topics, notes, lectures and mock test series for CLAT Exam by signing up for free.

Here you can find the meaning of Legal Principle: A characteristic feature of partnerships is the principle of mutual agency, i.e., every partner is an agent for every other partner and will hence be able to bind them by his act, within the business of partnership.Fact Situation : Ram and Shyam are partners of M/s R & S Trading Company which trades in rice varieties.Ram agrees to purchase ten tons of rice from Govind. Ram dies after the rice is delivered to the premises of M/s R & S Trading Company but before the payment of price is made. Is the agreement binding on Shyam?Which of the following statements is the most appropriate in relation to the legal principle stated above?Options:a)Being partners, Ram’s agreement to purchase rice for their partnership, is not binding on Shyam.b)Since Ram is no more, the agreement is not binding on Shyam.c)Being partners, Ram’s agreement to purchase rice for their partnership, is binding on Shyam.d)The agreement is binding on Ram and not on Shyam since the rice is delivered only to M/s R & S Trading Company and not to Shyam.Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Legal Principle: A characteristic feature of partnerships is the principle of mutual agency, i.e., every partner is an agent for every other partner and will hence be able to bind them by his act, within the business of partnership.Fact Situation : Ram and Shyam are partners of M/s R & S Trading Company which trades in rice varieties.Ram agrees to purchase ten tons of rice from Govind. Ram dies after the rice is delivered to the premises of M/s R & S Trading Company but before the payment of price is made. Is the agreement binding on Shyam?Which of the following statements is the most appropriate in relation to the legal principle stated above?Options:a)Being partners, Ram’s agreement to purchase rice for their partnership, is not binding on Shyam.b)Since Ram is no more, the agreement is not binding on Shyam.c)Being partners, Ram’s agreement to purchase rice for their partnership, is binding on Shyam.d)The agreement is binding on Ram and not on Shyam since the rice is delivered only to M/s R & S Trading Company and not to Shyam.Correct answer is option 'C'. Can you explain this answer?, a detailed solution for Legal Principle: A characteristic feature of partnerships is the principle of mutual agency, i.e., every partner is an agent for every other partner and will hence be able to bind them by his act, within the business of partnership.Fact Situation : Ram and Shyam are partners of M/s R & S Trading Company which trades in rice varieties.Ram agrees to purchase ten tons of rice from Govind. Ram dies after the rice is delivered to the premises of M/s R & S Trading Company but before the payment of price is made. Is the agreement binding on Shyam?Which of the following statements is the most appropriate in relation to the legal principle stated above?Options:a)Being partners, Ram’s agreement to purchase rice for their partnership, is not binding on Shyam.b)Since Ram is no more, the agreement is not binding on Shyam.c)Being partners, Ram’s agreement to purchase rice for their partnership, is binding on Shyam.d)The agreement is binding on Ram and not on Shyam since the rice is delivered only to M/s R & S Trading Company and not to Shyam.Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of Legal Principle: A characteristic feature of partnerships is the principle of mutual agency, i.e., every partner is an agent for every other partner and will hence be able to bind them by his act, within the business of partnership.Fact Situation : Ram and Shyam are partners of M/s R & S Trading Company which trades in rice varieties.Ram agrees to purchase ten tons of rice from Govind. Ram dies after the rice is delivered to the premises of M/s R & S Trading Company but before the payment of price is made. Is the agreement binding on Shyam?Which of the following statements is the most appropriate in relation to the legal principle stated above?Options:a)Being partners, Ram’s agreement to purchase rice for their partnership, is not binding on Shyam.b)Since Ram is no more, the agreement is not binding on Shyam.c)Being partners, Ram’s agreement to purchase rice for their partnership, is binding on Shyam.d)The agreement is binding on Ram and not on Shyam since the rice is delivered only to M/s R & S Trading Company and not to Shyam.Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Legal Principle: A characteristic feature of partnerships is the principle of mutual agency, i.e., every partner is an agent for every other partner and will hence be able to bind them by his act, within the business of partnership.Fact Situation : Ram and Shyam are partners of M/s R & S Trading Company which trades in rice varieties.Ram agrees to purchase ten tons of rice from Govind. Ram dies after the rice is delivered to the premises of M/s R & S Trading Company but before the payment of price is made. Is the agreement binding on Shyam?Which of the following statements is the most appropriate in relation to the legal principle stated above?Options:a)Being partners, Ram’s agreement to purchase rice for their partnership, is not binding on Shyam.b)Since Ram is no more, the agreement is not binding on Shyam.c)Being partners, Ram’s agreement to purchase rice for their partnership, is binding on Shyam.d)The agreement is binding on Ram and not on Shyam since the rice is delivered only to M/s R & S Trading Company and not to Shyam.Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice CLAT tests.

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