A notice to one partner operates as a notice to the whole firm. However, for that:
Section 24 of the Indian Partnership Act, 1932 makes notice to a partner who habitually acts in the business of the firm operate as notice to the firm, except in the case of…
Choose your answer
A notice to one partner operates as a notice to the whole firm. However, for that:
Answer and explanation
Correct answer D
Section 24 of the Indian Partnership Act, 1932 makes notice to a partner who habitually acts in the business of the firm operate as notice to the firm, except in the case of a fraud on the firm committed by or with the consent of that partner. The answer therefore combines the condition and the exception: "the notice must be given to a partner who habitually acts in the business of the firm, and notice to a partner who commits a fraud on the firm will not be notice to the firm". Notice to a dormant or sleeping partner does not satisfy the acting-partner condition.
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