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The position of a minor in a partnership firm is to be determined taking into account
1 . The Indian Contract Act, 1872
2 . The Indian Partnership Act, 1932
3 . Minor’s agreement
4 . The Majority Act, 1875
- a)1 & 2
- b)2 & 3
- c)3 & 4
- d)1 & 4
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
The position of a minor in a partnership firm is to be determined taki...
The position of a minor in a partnership firm is determined by:
1. The Indian Contract Act, 1872: The Indian Contract Act provides guidelines regarding the capacity of a minor to enter into a contract. According to Section 11 of the Act, a minor is not competent to enter into a contract, and any agreement made by a minor is void ab initio. Therefore, a minor cannot become a partner in a partnership firm as it involves entering into a contractual agreement.
2. The Indian Partnership Act, 1932: The Indian Partnership Act governs the formation and operation of partnership firms in India. According to Section 30 of the Act, a person who is not competent to contract, such as a minor, cannot be a partner in a firm. However, a minor can be admitted to the benefits of partnership with the consent of all the partners. In such a case, the minor does not have any liability for the debts and obligations of the firm.
3. Minor's agreement: Although a minor cannot enter into a valid contract, the Indian Partnership Act allows a minor to enter into a partnership agreement with the consent of all the partners. This agreement is known as a "minor's agreement." It specifies the rights and benefits that the minor will receive from the partnership, without imposing any liability on the minor for the firm's debts.
4. The Majority Act, 1875: The Majority Act defines the age of majority in India. According to the Act, a person attains majority at the age of 18. This means that a minor below the age of 18 cannot be a partner in a partnership firm.
Therefore, the correct answer is option A: 1 & 2. The position of a minor in a partnership firm is determined by the Indian Contract Act and the Indian Partnership Act. The minor's agreement and the Majority Act are also relevant in understanding the rights and limitations of a minor in a partnership.
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1. The Indian Contract Act, 1872: The Indian Contract Act provides guidelines regarding the capacity of a minor to enter into a contract. According to Section 11 of the Act, a minor is not competent to enter into a contract, and any agreement made by a minor is void ab initio. Therefore, a minor cannot become a partner in a partnership firm as it involves entering into a contractual agreement.
2. The Indian Partnership Act, 1932: The Indian Partnership Act governs the formation and operation of partnership firms in India. According to Section 30 of the Act, a person who is not competent to contract, such as a minor, cannot be a partner in a firm. However, a minor can be admitted to the benefits of partnership with the consent of all the partners. In such a case, the minor does not have any liability for the debts and obligations of the firm.
3. Minor's agreement: Although a minor cannot enter into a valid contract, the Indian Partnership Act allows a minor to enter into a partnership agreement with the consent of all the partners. This agreement is known as a "minor's agreement." It specifies the rights and benefits that the minor will receive from the partnership, without imposing any liability on the minor for the firm's debts.
4. The Majority Act, 1875: The Majority Act defines the age of majority in India. According to the Act, a person attains majority at the age of 18. This means that a minor below the age of 18 cannot be a partner in a partnership firm.
Therefore, the correct answer is option A: 1 & 2. The position of a minor in a partnership firm is determined by the Indian Contract Act and the Indian Partnership Act. The minor's agreement and the Majority Act are also relevant in understanding the rights and limitations of a minor in a partnership.
Most Upvoted Answer
The position of a minor in a partnership firm is to be determined taki...
A Partnership arises from a contract, and therefore, such a contract is governed not only by the provisions of the Partnership Act in that regard, but also by the general law of contract in such matters, where the Partnership Act does not specifically make any provision. It has been expressly provided in the Partnership Act that unrepealed provisions of the Indian Contract Act, 1872, save in so far as they are inconsistent with the express provisions of this act, shall continue to apply. Thus, the rules relating to offer and acceptance, consideration, free consent, legality of object, etc, as contained in the Indian Contract Act are applicable to a contract of Partnership also. On the other hand , regarding the position of minor, since there is specific provision contained in Section 30 of the Indian Partnership Act, the minor’s position is governed by the provision of the Partnership Act.
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The position of a minor in a partnership firm is to be determined taking into account1 . The Indian Contract Act, 18722 . The Indian Partnership Act, 19323 . Minor’s agreement4 . The Majority Act, 1875a)1 & 2b)2 & 3c)3 & 4d)1 & 4Correct answer is option 'A'. Can you explain this answer?
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