Q: What is contingent dissolution of partnership firm ?
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Ans: Contingent Dissolution is due to happening of contingent events like after the completion of tenure of contract of partnership or due to the death of partner in partnership firm.
Ans: The problem presented is based on section 30(3) of the Partnership Act. According to section 30(3)- "The share of a minor is liable for the acts of the firm, but the minor is not personally liable for any such act." Since in the present problem 'Zuber' is a minor and is entitled to receive profits in the partnership firm. The creditors will be successful in recovering their debts only from 'A' and 'B' and only to the extent of the profits going to 'Zuber'. 'Zuber' cannot be held personally liable for the loss caused to the firm.
Ans: Section 27 of partnership act, 1932 mentions about liability of firm for misapplication by partners where (a) a partner acting within his apparent authority attains money or property from a third party as well as misapplies it, the firm will be liable for the loss of the partner. (b) If a firm in the course of its business attains money or property from a third party, and the money or property is misapplied by any of the partners while it is in the custody of the firm, the firm will also be liable for such loss.
Ans: According to section 7 of partnership act, 1932, when no provision is made by contract between the partners for the duration of their partnership or for the determination of their partnership, the partnership is "partnership at will". It means that the duration of partnership will depend upon the will of the partners.
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