Question

The following is true about partnership firms:

• A. A new partner can be admitted in a partnership firm with the consent of all partners.
• B. A minor is incompetent to contract but his share in the property and profits is liable for the acts of the firm.
• C. A person may be held liable as a partner under the doctrine of holding out.
• D. All of the above statements are true

Hint:

In partnerships, unanimous consent is the norm for new admissions unless stated otherwise in the partnership deed.

Answer 1

The Correct Option is D

Step 1: Admission of a new partner.
Under Section 31 of the Indian Partnership Act, 1932, a new partner can be admitted only with the consent of all existing partners, unless otherwise agreed. This makes (a) correct.
Step 2: Minor’s position.
As per Section 30, a minor cannot enter into a contract, but may be admitted to the benefits of partnership. His share in the profits and property is liable for the firm’s acts. This makes (b) correct.
Step 3: Doctrine of holding out.
Section 28 provides that if a person represents himself as a partner, he may be liable as a partner to third parties — even if no actual partnership exists. This confirms (c) is correct.
Step 4: Conclusion.
Since (a), (b), and (c) are correct, the right answer is (d). \[ \boxed{(d)} \]