A, a partner, buys land in his own name with funds belonging to the partnership. Under section 88 of…
Section 88 names a partner among the persons "bound in a fiduciary character" who must hold any advantage gained through that position for the others. Illustration (d) to…
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A, a partner, buys land in his own name with funds belonging to the partnership. Under section 88 of the Indian Trusts Act, 1882, for whose benefit does A hold the land?
Answer and explanation
Correct answer B
Section 88 names a partner among the persons "bound in a fiduciary character" who must hold any advantage gained through that position for the others. Illustration (d) to section 88 states that "A holds such land for the benefit of the partnership." Taking the title in his own name or repaying the money later does not change this, and A, being a partner, shares in the benefit along with the others.