Which of the following statements are correct ? (a) A partner of an unregistered firm can sue as a…
Registration of firms is designed chiefly to protect third parties, and its absence need not prevent the disappearance of an unregistered or imperfectly registered firm.…
Choose your answer
Which of the following statements are correct ?
(a) A partner of an unregistered firm can sue as a partner.
(b) An unregistered firm can enforce its claims against third parties in the civil courts.
(c) The chapter named Registration of firms in Partnership Act is applicable to Hindu Trading Families.
(d) Registration of firms is designed primarily to protect third parties and the absence of registration need not prevent disappearance of an unregistered or imperfectly registered firm.
Answer and explanation
Correct answer D
Registration of firms is designed chiefly to protect third parties, and its absence need not prevent the disappearance of an unregistered or imperfectly registered firm. Under s.69 of the Partnership Act an unregistered firm and its partners cannot sue to enforce contractual claims, so "Only (d) is correct."
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