Partnership Act - Part 4
(263).jpg "Partnership Act - Part 4")
Questions on : 1)Introduction and Authority of a Partner. 2)Implied Authority of a Partner. 3)Liabilities of a Firm and its Partners to a Third Party. 4)Reconstituion of a Firm. __________________________________________________ No. Of Questions to be Answered : Random 20 out of 53
- 1.The liability of the partners in a firm is
- A.
Limited
- B.
Unlimited
- C.
Joint and several
- D.
Both (b) and (c).
- 2.The liability of a partner is only for the 'acts of the firm' which are done while he is a partner.
- A.
True, Section 25 of the Indian Partnership Act makes specific provision in this regard.
- B.
False, as these is no term like 'act of the firm' in the Indian Partnership Act
- 3.An act or omission by all the partners or by any partner or by firm's agent which gives rise to a right enforceable by or against the firm, is known as an
- A.
Act of partners
- B.
Act of firm
- C.
Authorised act
- D.
Actual act
- 4.An act of a partner done by him in the usual course business, is an act of the firm.
- A.
True
- B.
False
- 5.The firm is bound by the act of a partner which are done by firm within the scope of his
- A.
Express authority
- B.
Implied authority
- C.
Both (a) and (b)
- D.
Only (a).
- 6.A firm is bound by the acts of a partner over if these are done without any express authority.
- A.
True, if such acts are within the scope of implied authority.
- B.
False, as acts without express authority are void.
- 7.A firm is bound by an act of a partner only if is done by him in
- A.
His own name
- B.
Firm's name
- C.
Managing partner's name
- D.
None of these.
- 8.The scope and concept of partner's implied authority is contained in which of the following section of the Indian Partnership Act ?
- A.
Section 18
- B.
Section 19
- C.
Section 20
- D.
Section 22
- 9.An act of a partner to borrow money is within the scope of his implied authority in case of
- A.
Trading business
- B.
Non-trading business
- C.
Both of these
- D.
None of these
- 10.Which of the following acts are within the implied authority of a partner?
- A.
To engage a lawyer and defend the action brought against the firm.
- B.
To purchase goods of the kind used in firm's business.
- C.
To engage servants to perform the business of the firm.
- D.
All of these.
- 11.Which of the following acts are not included in the implied authority of a partner?
- A.
To enter into partnership on behalf of the firm.
- B.
To borrow money for the purposes of business.
- C.
To settle accounts with the persons dealing with the firm.
- D.
To buy or sell goods on account of partnership.
- 12.Which of the following act has not been statutorily excluded form the scope of implied authority of a partner?
- A.
To withdraw a suit or proceedings filed on behalf of the firm.
- B.
To submit a dispute, relating to the business of the firm, to arbitration.
- C.
To receive payment of the debts due to the firm and give receipt for the same.
- D.
To acquire or transfer immovable property on behalf of the firm
- 13.A partner has implied authority to open a bank account, on behalf of the firm, in his own name.
- A.
True, as it is necessary for conducting the business affairs of the firm.
- B.
False as it has been excluded form the scope of implied authority under Section 19(2).
- 14.A partner has implied authority to
- A.
Compromise any claim by the firm
- B.
Relinquish any claim by the firm
- C.
Admit any liability in a suit against the firm
- D.
None of these.
- 15.The implied authority of the partners may ' be restricted by an agreement between them.
- A.
True, Section 20 makes a specific provision in this regard.
- B.
False, as implied authority of a partner cannot be restricted by such agreements.
- 16.If a person dealing with the firm has no knowledge of the express restrictions on partner's implied authority. Then for such restricted acts, the firm
- A.
Shall be liable
- B.
Shall not be liable
- C.
Is non-existent
- D.
Is a legal person.
- 17.The firm is bound by an act of a partner done without any express or implied authority if such act is
- A.
Done in emergency
- B.
Done to protect the firm form loss- threatened by the emergency
- C.
Reasonable in the circumstances
- D.
All of the these.
- 18.The firm is liable to third parties for wrongful act of a partner if the wrongful act is done
- A.
In the ordinary course of business of the firm.
- B.
With the authority of all other partners.
- C.
Either (a) or (b).
- D.
Both (a) and (b).
- 19.The liability of the firm for wrongful acts of a partner is provided in ___________.
- A.
Section 26
- B.
Section 27
- C.
Section 28
- D.
None of these
- 20.Where the money received form a third party by the firm, in the ordinary course of its business, is misapplied by one of the partners to his own use, then the
- A.
Defaulting partner alone is liable for the same.
- B.
Firm is liable for the same.
- C.
Firm is not liable for the same.
- D.
Third party has no remedy.
- 21.The firm is liable to a third party for misapplication of third party's money or property by a partner to his own use, where the money or property is received by
- A.
A partner and then misapplied by the same partner.
- B.
The firm and then misapplied by any of the partner.
- C.
Both of these.
- D.
Only(a).
- 22.The liability of the firm, for misapplication of third party's money or property by a partner to his own use, is provided in_____
- A.
Sec 26
- B.
Sec 27
- C.
Sec 28
- D.
Sec 29
- 23.A person, even if he is not a partner in the firm, may be held liable as partner if he knowingly permits himself to be represented as a partner.
- A.
True, as the principle of holding out applies in such a case.
- B.
False, as a person can become a partner only by agreement not otherwise.
- 24.The liability of a person, by the principle of holding out is provided in
- A.
Section 25
- B.
Section 26
- C.
Section 27
- D.
Section 28
- 25.After retirement from firm, which of the following person is not liable by holding out, even if the public notice of retirement is not given ?
- A.
Active partner
- B.
Sleeping partner
- C.
Representative of deceased partner
- D.
Both (b) and (c)
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