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A partner may be expelled from the firm on the fulfillment of the condition that the expulsion power is exercised.
- a)As given by express contract
- b)By majority of partners
- c)In absolute good faith
- d)All of the above
Correct answer is option 'D'. Can you explain this answer?
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A partner may be expelled from the firm on the fulfillment of the cond...
Expulsion of Partner from the Firm
A partner may be expelled from the firm on the fulfillment of the condition that the expulsion power is exercised. The conditions under which a partner may be expelled from the firm are given below:
Express Contract
- If the partnership agreement provides for the expulsion of a partner, then a partner may be expelled from the firm as given by an express contract.
Majority of Partners
- If the partnership agreement is silent on the expulsion of a partner, then a partner may be expelled from the firm by the majority of partners.
Absolute Good Faith
- The expulsion of a partner must be done in absolute good faith and not for any ulterior motive or personal gain.
All of the Above
- The correct answer is option 'D', i.e., all of the above conditions must be fulfilled for a partner to be expelled from the firm.
Conclusion
In conclusion, the expulsion of a partner from the firm is a serious matter and must be done in accordance with the partnership agreement and the principles of good faith. The conditions under which a partner may be expelled from the firm are given by an express contract, majority of partners, and absolute good faith.
A partner may be expelled from the firm on the fulfillment of the condition that the expulsion power is exercised. The conditions under which a partner may be expelled from the firm are given below:
Express Contract
- If the partnership agreement provides for the expulsion of a partner, then a partner may be expelled from the firm as given by an express contract.
Majority of Partners
- If the partnership agreement is silent on the expulsion of a partner, then a partner may be expelled from the firm by the majority of partners.
Absolute Good Faith
- The expulsion of a partner must be done in absolute good faith and not for any ulterior motive or personal gain.
All of the Above
- The correct answer is option 'D', i.e., all of the above conditions must be fulfilled for a partner to be expelled from the firm.
Conclusion
In conclusion, the expulsion of a partner from the firm is a serious matter and must be done in accordance with the partnership agreement and the principles of good faith. The conditions under which a partner may be expelled from the firm are given by an express contract, majority of partners, and absolute good faith.
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A partner may be expelled from the firm on the fulfillment of the cond...
The correct answer is (d) All of the above. In order to expel a partner from a firm, certain conditions must be fulfilled. These conditions ensure that the expulsion is carried out fairly and according to the agreed-upon terms of the partnership. The conditions are as follows:
1. Express Contract: The partnership agreement or contract must have a clause that allows for the expulsion of a partner. This means that the partners have explicitly agreed upon the terms and conditions under which a partner may be expelled from the firm. This can be in writing or agreed upon verbally, depending on the terms of the partnership agreement.
2. Majority of Partners: The decision to expel a partner must be made by a majority of the partners. This ensures that the decision is not taken lightly and that it is supported by most of the partners in the firm. The required majority may be specified in the partnership agreement or follow the default rules set forth by the applicable partnership law in the jurisdiction.
3. Absolute Good Faith: The expulsion must be carried out in absolute good faith. This means that the decision to expel a partner should be based on legitimate reasons and not be arbitrary or malicious. The partners must exercise their expulsion power fairly and honestly, taking into consideration the best interests of the firm and the other partners.
In summary, a partner may be expelled from a firm if the expulsion power is exercised in accordance with the express contract, by a majority of partners, and in absolute good faith. These conditions help to ensure that the expulsion is carried out fairly and in the best interests of the firm and its partners.
1. Express Contract: The partnership agreement or contract must have a clause that allows for the expulsion of a partner. This means that the partners have explicitly agreed upon the terms and conditions under which a partner may be expelled from the firm. This can be in writing or agreed upon verbally, depending on the terms of the partnership agreement.
2. Majority of Partners: The decision to expel a partner must be made by a majority of the partners. This ensures that the decision is not taken lightly and that it is supported by most of the partners in the firm. The required majority may be specified in the partnership agreement or follow the default rules set forth by the applicable partnership law in the jurisdiction.
3. Absolute Good Faith: The expulsion must be carried out in absolute good faith. This means that the decision to expel a partner should be based on legitimate reasons and not be arbitrary or malicious. The partners must exercise their expulsion power fairly and honestly, taking into consideration the best interests of the firm and the other partners.
In summary, a partner may be expelled from a firm if the expulsion power is exercised in accordance with the express contract, by a majority of partners, and in absolute good faith. These conditions help to ensure that the expulsion is carried out fairly and in the best interests of the firm and its partners.
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A partner may be expelled from the firm on the fulfillment of the condition that the expulsion power is exercised.a)As given by express contractb)By majority of partnersc)In absolute good faithd)All of the aboveCorrect answer is option 'D'. Can you explain this answer?
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