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CA Foundation · Business Laws · The Indian Partnership Act, 1932

Gopal, Hasina and Irfan are partners in a firm. The partnership deed says nothing about the admission of new partners. They want to admit Jyoti as a partner. Which statement is correct?

Jyoti can be admitted only with the consent of all the existing partners, since the deed is silent and the default rule applies. Neither a majority's agreement nor a senior partner's approval is sufficient, and working in the firm does not by itself make her a partner.

  1. AJyoti can be admitted if a majority of partners agree
  2. BJyoti can be admitted if Gopal, the senior partner, approves
  3. CJyoti can be admitted only with the consent of all the existing partners, in the absence of a contrary contractCorrect
  4. DJyoti becomes a partner automatically by working in the firm for a month

Explanation

Subject to a contract between the partners, no person can be introduced as a partner without the consent of all the existing partners. Because the deed is silent, the default rule applies, so a majority or senior partner's approval is not enough.

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