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

Match the situation in Column I with the rule in Column II. Column I: (P) Change in the constitution of a firm; (Q) A firm formed for specific adventures carries out other adventures; (R) A partner is restrained from other business. Column II: (1) Rights and duties for the other adventures are the same as for the original ones; (2) Contract may provide a partner shall not carry on any business other than that of the firm, despite section 27 of the Contract Act; (3) Rights and duties in the reconstituted firm remain the same as before the change, as far as may be.

The correct matching is P-3, Q-1, R-2. A change in constitution leaves rights and duties the same as far as may be; other adventures follow the original adventures' rules; and a contract may bar a partner from other business despite section 27 of the Contract Act.

  1. AP-3, Q-1, R-2Correct
  2. BP-1, Q-3, R-2
  3. CP-2, Q-1, R-3
  4. DP-3, Q-2, R-1

Explanation

Section 17(a) keeps rights and duties the same after a change in constitution (P-3). Section 17(c) applies the same rights and duties to other adventures (Q-1). Section 11(2) allows a contract barring other business notwithstanding section 27 of the Contract Act (R-2). The other options mismatch these.

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