Skip to content

CSEET · Business Laws and Management · Elements of Law relating to Partnership and Limited Liability Partnership

Anil, Bina and Chetan run a firm under a contract that allows any partner to carry on competing business. All three later agree, by their conduct over several years, that no partner will take part in any outside business. Which statement is correct as per Section 11?

The contract can be varied by the consent of all the partners, and that consent may be express or implied from a course of dealing. Majority consent is insufficient, and the section does not demand a registered deed, so the long-standing conduct of all three can amount to variation.

  1. AThe contract cannot be varied once made
  2. BThe contract can be varied only by a registered deed
  3. CThe contract can be varied by the consent of all partners, which may be implied by a course of dealingCorrect
  4. DThe contract can be varied by the consent of a majority of partners

Explanation

Section 11(1) says the contract between partners may be varied by consent of all the partners, and that consent may be express or implied by a course of dealing. Majority consent is not enough, and no registered deed is required by the section.

Did you get it right without looking?

One question tells you little. A timed set on Elements of Law relating to Partnership and Limited Liability Partnership shows your real accuracy, how long you take and where you lose marks.

Practise Elements of Law relating to Partnership and Limited Liability PartnershipFree diagnostic mock

More Elements of Law relating to Partnership and Limited Liability Partnership questions