A partner who habitually acts in the firm’s business receives notice of a matter relating to its…
The imputation does not apply to a fraud on the firm committed by or with the consent of the partner who received notice.
Choose your answer
A partner who habitually acts in the firm’s business receives notice of a matter relating to its affairs. There is no fraud on the firm. What is the effect under section 24 of the Indian Partnership Act, 1932?
Answer and explanation
Correct answer C
The imputation does not apply to a fraud on the firm committed by or with the consent of the partner who received notice.
Option feedback
Option A
Section 24 imputes the relevant notice to the firm without requiring individual receipt by every partner.
Option B
The statute does not require a further acknowledgment on behalf of the firm.
Option C
The partner habitually acts in the business and the matter concerns the firm's affairs. Those conditions bring the notice within section 24.
Option D
The statute gives the notice its effect without making onward transmission to every partner a condition.
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