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contract_laws:minor_admitted_to_the_benefits_of_partnership_184130122018

Minor admitted to the benefits of partnership

Since a minor has no legal capacity to enter cannot become a partner in a firm. Moreover, partnership with a minor is voidable initio. However, a minor may be admitted to the benefits of partnership according to Section. 30.

  1. With the consent of all the partners of a firm, a minor may be admitted to the benefits of partnership. Such a minor gets a right to such a share of the property and of the profits of the firm as may be agreed upon by the partners. The minor may have the right of access to inspect and copy the accounts of the firm.
  2. The minor's share is liable for the acts of the firm but the minor is not personally liable for any such act.
  3. the minor has no right to sue for accounts or for payment of share etc., except when severing his connections with the firm. In such a case the valuation is to be made as per rules. When there is such a suit by the minor (through his guardian), the partners may dissolve the firm. The court may proceed as in a suit for dissolution and for settlement of accounts. It may determine the share of the minor.
  4. Option : The minor, within 6 months of attaining majority or of obtaining knowledge of his admittance to the firm (whichever is later), may give public notice declaring his option to become or not to become a partner. If he does not give such a notice, he is deemed to be a partner on the expiry of the said 6 months. The burden of providing the absence of knowledge etc., is on the person asserting it.
  5. Option to become a partner :
    1. His rights and liabilities continue up to the date on which he becomes a partner. He becomes liable personally to third parties for all previous acts of the firm since his admittance as a minor.
    2. His share and his profits shall be the same as he was entitled as a minor.
  6. Option not to become a partner :
    1. His rights and liabilities shall continue to be those of a minor upto the date of giving public notice.
    2. His share shall not be liable for any acts of the firm, done after giving notice and
    3. He shall be entitled to sue the partners for his share of property and profits.


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Created on 2020/10/19 23:13 by • Last modified on 2020/11/07 18:32 (external edit)