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X and y are partners in a partnership firm . x introduces A, a manager, as his partner to Z. A remained silent. Z, a trader believing A as a partner supplied 100 TV sets to the firm on credit . after expiry of credit period , Z did not get amount of TV series of TV sets sold to the partnership firm . Z filed a suit against x and A gor the recovery of price . advice Z whether he can recover the amount from X and A under the partnership act , 1932?
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X and y are partners in a partnership firm . x introduces A, a manager...
Can Z recover the amount from X and A under the Partnership Act, 1932?
- Introduction
- Partnership Act, 1932
- Implied Authority of a Partner
- Lack of Partnership Deed
- Conclusion
The case involves X and Y being partners in a partnership firm. X introduces A as a manager to Z without any objection from A. Z, believing A to be a partner, supplies 100 TV sets to the firm on credit. After the credit period expires, Z does not receive payment for the TV sets sold to the partnership firm.
The Partnership Act, 1932, governs the formation and operation of partnership firms in India. According to the Act, a partnership is defined as the relation between two or more persons who have agreed to share the profits of a business carried on by all or any of them acting for all.
Under section 18 of the Partnership Act, every partner is an agent of the firm and has the authority to bind the firm and other partners in transactions that are carried out in the usual course of business. This means that if a partner enters into a transaction on behalf of the firm, the other partners are bound by it, and the firm is liable for any obligations arising from it.
In the absence of a partnership deed, the Partnership Act provides that the partners have equal rights in the management of the firm and share profits and losses equally. However, it does not clarify the roles and responsibilities of each partner.
In this case, A was introduced as a partner by X, and Z believed that A was a partner when they supplied the TV sets to the firm on credit. As per the Partnership Act, A is an agent of the firm and has the authority to bind the firm and other partners in transactions carried out in the usual course of business. Therefore, Z can recover the amount from both X and A as they are jointly and severally liable for the obligations of the firm. However, in the absence of a partnership deed, it is difficult to determine the roles and responsibilities of each partner, which could lead to disputes in the future.
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X and y are partners in a partnership firm . x introduces A, a manager, as his partner to Z. A remained silent. Z, a trader believing A as a partner supplied 100 TV sets to the firm on credit . after expiry of credit period , Z did not get amount of TV series of TV sets sold to the partnership firm . Z filed a suit against x and A gor the recovery of price . advice Z whether he can recover the amount from X and A under the partnership act , 1932?
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X and y are partners in a partnership firm . x introduces A, a manager, as his partner to Z. A remained silent. Z, a trader believing A as a partner supplied 100 TV sets to the firm on credit . after expiry of credit period , Z did not get amount of TV series of TV sets sold to the partnership firm . Z filed a suit against x and A gor the recovery of price . advice Z whether he can recover the amount from X and A under the partnership act , 1932? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about X and y are partners in a partnership firm . x introduces A, a manager, as his partner to Z. A remained silent. Z, a trader believing A as a partner supplied 100 TV sets to the firm on credit . after expiry of credit period , Z did not get amount of TV series of TV sets sold to the partnership firm . Z filed a suit against x and A gor the recovery of price . advice Z whether he can recover the amount from X and A under the partnership act , 1932? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X and y are partners in a partnership firm . x introduces A, a manager, as his partner to Z. A remained silent. Z, a trader believing A as a partner supplied 100 TV sets to the firm on credit . after expiry of credit period , Z did not get amount of TV series of TV sets sold to the partnership firm . Z filed a suit against x and A gor the recovery of price . advice Z whether he can recover the amount from X and A under the partnership act , 1932?.
X and y are partners in a partnership firm . x introduces A, a manager, as his partner to Z. A remained silent. Z, a trader believing A as a partner supplied 100 TV sets to the firm on credit . after expiry of credit period , Z did not get amount of TV series of TV sets sold to the partnership firm . Z filed a suit against x and A gor the recovery of price . advice Z whether he can recover the amount from X and A under the partnership act , 1932? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about X and y are partners in a partnership firm . x introduces A, a manager, as his partner to Z. A remained silent. Z, a trader believing A as a partner supplied 100 TV sets to the firm on credit . after expiry of credit period , Z did not get amount of TV series of TV sets sold to the partnership firm . Z filed a suit against x and A gor the recovery of price . advice Z whether he can recover the amount from X and A under the partnership act , 1932? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X and y are partners in a partnership firm . x introduces A, a manager, as his partner to Z. A remained silent. Z, a trader believing A as a partner supplied 100 TV sets to the firm on credit . after expiry of credit period , Z did not get amount of TV series of TV sets sold to the partnership firm . Z filed a suit against x and A gor the recovery of price . advice Z whether he can recover the amount from X and A under the partnership act , 1932?.
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