Question:
Read the following statements: Assertion (A) and Reason (R).
Assertion (A): It is not compulsory to register a partnership firm as there are no penalties for non-registration.
Reason (R): An unregistered partnership firm can file a suit in any court against the firm or other partners for enforcement of any right arising from a contract or right conferred by the Partnership Act.
Read the following statements: Assertion (A) and Reason (R).
Assertion (A): It is not compulsory to register a partnership firm as there are no penalties for non-registration.
Reason (R): An unregistered partnership firm can file a suit in any court against the firm or other partners for enforcement of any right arising from a contract or right conferred by the Partnership Act.
Assertion (A): It is not compulsory to register a partnership firm as there are no penalties for non-registration.
Reason (R): An unregistered partnership firm can file a suit in any court against the firm or other partners for enforcement of any right arising from a contract or right conferred by the Partnership Act.
Show Hint
Unregistered partnership = No legal penalty,
but also = No legal remedy!
Register to enjoy full legal rights.
Updated On: Jul 4, 2025
- Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
- Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
- Assertion (A) is true, but Reason (R) is false.
- Assertion (A) is false, but Reason (R) is true.
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The Correct Option is C
Solution and Explanation
Assertion (A) is correct:
Registration of a partnership firm under the Indian Partnership Act, 1932 is not compulsory by law, and no legal penalty is imposed for non-registration.
Reason (R) is incorrect:
An unregistered partnership firm cannot file a suit in a court against any third party, the firm, or the partners to enforce contractual rights. This is a legal restriction placed on unregistered firms to encourage registration.
Therefore, the assertion is true, but the reason is false.
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