Source: 3)a)i)2m,June20192 Marks
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Question Scenario

What is the provision related to the effect of notice to an acting partner of the firm as per the Indian Partnership Act, 1932?

Estimated Writing Time: 3 mins Try in Practice Mode

Suggested Answer

Effect of notice to an acting partner of the firm (6 Marks) \nAccording to Section 24 of the Indian Partnership Act, 1932, notice to a partner who habitually acts in the business of the firm of any matter relating to the affairs of the firm operates as notice to the firm, except in the case of a fraud on the firm committed by or with the consent of that partner. \nThus, the notice to one is equivalent to the notice to the rest of the partners of the firm, just as a notice to an agent is notice to his principal. This notice must be actual and not constructive. It must further relate to the firm’s business. Only then it would constitute a notice to the firm.

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.

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