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CA Foundation · Business Laws · The Limited Liability Partnership Act, 2008

Mehta & Rao LLP, registered in Ahmedabad, enters into a contract to supply software services to Zenith Corp. Zenith Corp. later wants to sue for breach. Against whom should the suit be filed, given that an LLP is a body corporate?

The suit should be filed against the LLP in its own name. An LLP is a body corporate with a separate legal personality from its partners, so it can contract, own property, and sue or be sued. The partners are not the contracting parties.

  1. AAgainst the LLP in its own name, as it is a legal entity separate from its partnersCorrect
  2. BOnly against the individual partners, because an LLP cannot be sued
  3. COnly against the designated partners jointly
  4. DAgainst the Registrar of Companies on behalf of the LLP

Explanation

An LLP is a body corporate with a legal personality separate from its partners. It can sue and be sued in its own name and can hold property and enter contracts. The contract was made by the LLP, so the LLP is the proper defendant. The option naming only the partners ignores this separate legal existence.

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