Partnership Act Section 12: Resolving Ordinary Business Differences
Section 12 of the Partnership Act addresses how disagreements concerning the day-to-day operations of a partnership are handled.
According to this section, any difference arising in connection with the ordinary business of the partnership can be decided by:
- A majority of the partners.
This means that for routine business matters, a decision supported by more than half of the partners is binding, even if some partners disagree.
The option "a majority of partners" correctly reflects the provision in Section 12 for deciding differences on ordinary matters.
Important Questions from Partnership Act, 1932
- Which of the following is correct?
The important provision affecting partnership accounting, in the absence of a partnership deed is: As per Section 6 of the Indian Partnership Act, 1932, in determining whether a group of persons is or is not a firm, regard shall be had to which of the following?
- Atul, Bharat, and Chetan enter into a partnership. Atul invests $₹25,000$ for 6 months, Bharat invests $₹30,000$ for 8 months, and Chetan invests $₹40,000$ for 9 months. If the total profit is $₹37,000$, what is Chetan's share of the profit?
Match List - I with List - II and select the correct answer using the code given below :
List - I List - II (a) Partnership not created by status (i) CST v. K. Kelukutty (b) Essentials of partnership (ii) Kshetra Mohan v. Commr. of Excess Profit Tax (c) Joint Hindu Family and partnership (iii) Rakesh Kumar Dinesh Kumar v. U.G. Hotels and Resorts Ltd. (d) Partnership between outsiders and joint family (iv) Ganpat v. Annaji Match List - I with List - II and select the correct answer using the code given below :
List - I (Duties of partners) List - II (Relevant section under the Indian Partnership Act) (a) Duty of absolute good faith (i) Section 16 (b) (b) Duty not to compete (ii) Sections 12 (b) and 13 (f) (c) Duty of due deligence (iii) Section 10 (d) Duty to indemnify for fraud (iv) Section 9
