Q: Elaborate section 26 of partnership act, 1932 ?

Ans: According to Section 26 of the Partnership Act, 1932 , a partner is liable for any damage caused to a third party by the wrongful act of the firm. The offence must be related to the partnership firm and it can be cognizable as well as non cognizable offence.

Thus, the authority of one partner affects the other partner and thus the partner must be trustworthy in partnership firm. To limit the liability of partners, the limited liability partnership act was introduced in 2008. 

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