Q: Elaborate section 41 of Indian Partnership Act, 1932 ?

Ans: Section 41 of Indian Partnership Act, 1932 mentions compulsory dissolution. 

According to section 41(1) of partnership act, 1932, the partnership will be dissolved if one of the person gets insolvent.

If the partners gets insolvent,  the business will have to be compulsorily dissolved.

'Delectus personae'  means personal skills and if the partners gets insolvent,  the personal skills will be compulsorily dissolved.

According to section 37 of Indian Contract Act, the Contract gets dispensed and it needs not to be performed when the person who is to be performed lost his skills i.e., in case of death, physically disabled after Contract,  etc.

According to section 41(2) of partnership act, 1932, if any event occurs and it becomes unlawful for any act, the partnership gets dissolved.  For instance: The prohibition of sale of liquor is illegal and the partnership becomes unlawful and gets dissolved.

Suppose there are two businesses, i.e., one is of selling liquor and other is of selling shoes, the business of selling shoes is lawful and thus the partnership in that business will not get dissolved.


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