What is the right of a outgoing partner to carry on competing business according to the Indian…
Section 36 permits an outgoing partner to run and advertise a business competing with the old firm. In the absence of a contrary contract, the outgoing partner may not use…
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What is the right of a outgoing partner to carry on competing business according to the Indian Partnership Act, 1932?
Answer and explanation
Correct answer A
Section 36 permits an outgoing partner to run and advertise a business competing with the old firm. In the absence of a contrary contract, the outgoing partner may not use the firm's name, claim to carry on its business, or solicit its former customers. The Act also permits reasonable agreements restricting competition within specified time or geographical limits.
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