Indian Partnership Act - Practice Test

[#371] Which of the following amounts to enforcement of a right, by a partner of an unregistered firm, arising out of a contract between the parties

(A) An action between two former partners to enforce an agreement restraining an outgoing partner from carrying on in some area any business similar to that of the firm

(B) Suit for recovery of money due on a contract entered into between the partners of an unregistered firm after settlement of accounts between partners of a dissolved firm

(C) Suit for permanent injunction for passing off

(D) Neither (A) nor (B) nor (C)

Correct Answer

(D) Neither (A) nor (B) nor (C)

[#372] The liability of holding out is based upon the legal principle of

(A) Estoppel

(B) Agency

(C) Vicarious liability

(D) Constructive liability

Correct Answer

(A) Estoppel

[#373] Partnership as defined in the Indian Partnership Act, is the relation between persons who have agreed to share the . . . . . . . . of a business carried on by all or any of them acting for all.

(A) Profit

(B) Loss

(C) Expenses

(D) Capital

Correct Answer

(A) Profit

[#374] 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) Proportionately liable

(B) Treated as security

(C) Not liable

(D) Liable

Correct Answer

(C) Not liable

[#375] Which of the following is a strong but not sufficient test of partnership

(A) Sharing of profits

(B) Sharing of losses

(C) Either of the two

(D) None of the above

Correct Answer

(A) Sharing of profits

Indian Partnership Act - Study Mode

[#371] Which of the following amounts to enforcement of a right, by a partner of an unregistered firm, arising out of a contract between the parties

Correct Answer

[#372] The liability of holding out is based upon the legal principle of

Correct Answer

[#373] Partnership as defined in the Indian Partnership Act, is the relation between persons who have agreed to share the . . . . . . . . of a business carried on by all or any of them acting for all.

Correct Answer

[#374] 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

Correct Answer

[#375] Which of the following is a strong but not sufficient test of partnership

Correct Answer