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Commercial Law and Preliminaries of Auditing · Class 12 Commerce

Ch 1Law of Partnership — Class 12 Commercial Law and Preliminaries of Auditing, concept-first.

Law of Partnership opens the Class XII, Semester III syllabus, carrying 10 of the 40 marks on Part A (Commercial Law). Semester III, exactly like Semester I in Class XI, is a 100% Multiple Choice Question (MCQ) paper — every mark for this unit is earned through 1-mark MCQs, not descriptive answers.

13

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5

Concepts

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Key concepts

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Definition, Essential Elements, and Mutual Agency of Partnership

Partnership (Section 4, Indian Partnership Act, 1932) is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all.

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Chapter contents

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Overview

Law of Partnership opens the Class XII, Semester III syllabus, carrying 10 of the 40 marks on Part A (Commercial Law).

Definitions, Essential Elements, and Classification of Partnership

Definitions — Section 4, Indian Partnership Act, 1932. "Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all."…

Registration of Partnership Firms

Unlike a company, whose incorporation is compulsory, registration of a partnership firm under the Indian Partnership Act, 1932 is not compulsory — a firm may lawfully carry on business without ever re…

Rights and Liabilities of Partners

Mutual rights and duties — Sections 12 and 13. In the absence of a contract to the contrary between the partners, Section 12 governs the conduct of the firm's business: (a) every partner has a right t…

More questions

13 Q
+Show 10 questions10 questions
  1. Q1Under Section 4 of the Indian Partnership Act, 1932, 'Partnership' is best defined as: (A) A separate legal entity formed by two or more per…Free
  2. Q2Members of a Hindu Undivided Family (HUF) carry on an ancestral family business together. Are they, merely by virtue of this family status,…Free
  3. Q3Which of the following best captures the principle of 'mutual agency' under Section 18 of the Indian Partnership Act, 1932? (A) Only the man…Free
  4. Q4Which statement correctly describes the legal status of a partnership firm under the Indian Partnership Act, 1932? (A) A firm is a separate…Preview
  5. Q5A partnership formed with no fixed duration agreed between the partners, and with no provision made for how it is to be determined, is calle…Preview
  6. Q6Which of the following statements about liability is correct? (A) Every partner's liability under the Indian Partnership Act, 1932 is always…Preview
  7. Q7Under Sections 58-59 of the Indian Partnership Act, 1932, the statement filed for registering a firm must state all of the following EXCEPT:…Preview
  8. Q8An unregistered partnership firm wants to sue a customer to recover an unpaid trade debt arising from a contract made in the ordinary course…Preview
  9. Q9Which of the following acts is NOT within a partner's implied authority under Section 19(2), unless he is expressly authorised to do it? (A)…Preview
  10. Q10A minor, X, is admitted to the benefits of a partnership with the consent of all the partners. Which of the following correctly states X's p…Preview
+Show 3 questions3 questions
  1. Q11P, Q, and R are partners in a firm. P, without consulting Q and R, enters into a contract to acquire a piece of immovable property in the fi…Free
  2. Q12M, a minor, is admitted to the benefits of a partnership firm at the age of 15, with the consent of all the existing partners. M attains maj…Preview
  3. Q13N is not a partner in the firm of A & Co., but he frequently allows customers to believe, through his own conduct and statements, that he is…Preview