Class 12 Exam > Class 12 Questions > On the death of a partner, public notice of d...
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On the death of a partner, public notice of death is not given and the firm continues the business, then for the acts of firm done after his death, the estate of the deceased partner is
- a)Liable
- b)Treated as security
- c)Not liable
- d)Proportionately liable.
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
On the death of a partner, public notice of death is not given and the...
Public Notice and Business Continuation
When a partner dies, the partnership is dissolved by default, and the surviving partners may decide whether to continue the business or not. If they choose to continue, they may do so without giving public notice of the death of the partner.
Liability of Estate
In such a case, the estate of the deceased partner is not liable for the acts of the firm done after his or her death. This means that the estate will not be held responsible for any debts or obligations incurred by the firm after the partner's death.
Proportional Liability
However, if the surviving partners decide to continue the business, they become personally liable for all the debts and obligations of the firm. In this case, they will be held jointly and severally liable, which means that they will be individually responsible for paying the entire debt if one of them fails to do so.
Conclusion
In summary, when a partner dies and the firm continues the business without giving public notice, the estate of the deceased partner is not liable for the acts of the firm done after the death. The surviving partners become personally liable for the debts and obligations of the firm if they decide to continue the business.
When a partner dies, the partnership is dissolved by default, and the surviving partners may decide whether to continue the business or not. If they choose to continue, they may do so without giving public notice of the death of the partner.
Liability of Estate
In such a case, the estate of the deceased partner is not liable for the acts of the firm done after his or her death. This means that the estate will not be held responsible for any debts or obligations incurred by the firm after the partner's death.
Proportional Liability
However, if the surviving partners decide to continue the business, they become personally liable for all the debts and obligations of the firm. In this case, they will be held jointly and severally liable, which means that they will be individually responsible for paying the entire debt if one of them fails to do so.
Conclusion
In summary, when a partner dies and the firm continues the business without giving public notice, the estate of the deceased partner is not liable for the acts of the firm done after the death. The surviving partners become personally liable for the debts and obligations of the firm if they decide to continue the business.
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On the death of a partner, public notice of death is not given and the firm continues the business, then for the acts of firm done after his death, the estate of the deceased partner isa)Liableb)Treated as securityc)Not liabled)Proportionately liable.Correct answer is option 'C'. Can you explain this answer?
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On the death of a partner, public notice of death is not given and the firm continues the business, then for the acts of firm done after his death, the estate of the deceased partner isa)Liableb)Treated as securityc)Not liabled)Proportionately liable.Correct answer is option 'C'. Can you explain this answer? for Class 12 2024 is part of Class 12 preparation. The Question and answers have been prepared according to the Class 12 exam syllabus. Information about On the death of a partner, public notice of death is not given and the firm continues the business, then for the acts of firm done after his death, the estate of the deceased partner isa)Liableb)Treated as securityc)Not liabled)Proportionately liable.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for Class 12 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for On the death of a partner, public notice of death is not given and the firm continues the business, then for the acts of firm done after his death, the estate of the deceased partner isa)Liableb)Treated as securityc)Not liabled)Proportionately liable.Correct answer is option 'C'. Can you explain this answer?.
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On the death of a partner, public notice of death is not given and the firm continues the business, then for the acts of firm done after his death, the estate of the deceased partner isa)Liableb)Treated as securityc)Not liabled)Proportionately liable.Correct answer is option 'C'. Can you explain this answer?, a detailed solution for On the death of a partner, public notice of death is not given and the firm continues the business, then for the acts of firm done after his death, the estate of the deceased partner isa)Liableb)Treated as securityc)Not liabled)Proportionately liable.Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of On the death of a partner, public notice of death is not given and the firm continues the business, then for the acts of firm done after his death, the estate of the deceased partner isa)Liableb)Treated as securityc)Not liabled)Proportionately liable.Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
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