Question Scenario
Discuss the provisions regarding personal profits earned by a partner under the Indian Partnership Act, 1932?
Estimated Writing Time: 3 mins Try in Practice Mode
Source: 1)c)ii)2m,MDTP5, 1)c)ii)MDTP3, 1)c)ii)2m,MTP1,Sept2024, 1)c)ii)2m,MTP2,June2024, 3)a)ii)2m,June20192 Marks
Back to Law List Suggested Answer
Personal Profit earned by Partners (Section 16 of the Indian Partnership Act, 1932)
According to section 16, subject to contract between the partners:
a) If a partner derives any profit for himself from any transaction of the firm, or from the use of the property or business connection of the firm or the firm name, he shall account for that profit and pay it to the firm;
b) If a partner carries on any business of the same nature and competing with that of the firm, he shall account for and pay to the firm all profits made by him in that business.
Exam Strategy Tip
When answering law questions in the CA Foundation exam, follow the "Provision -> Facts -> Conclusion" structure for maximum marks. Ensure to state the relevant sections where applicable to earn bonus marks from the evaluator.
Ready to Practice More Law Cases?
Test your knowledge under timed conditions in our dedicated Writing Practice Mode. Get a feel for the real exam pressure.
Enter Writing Practice