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Business Environment and Law-Performance And Discharge Of Contracts

Minor As A Partner-Performance And Discharge Of Contracts

   Posted On :  08.05.2018 12:27 am

According to Indian Contract Act an agreement of a minor is void, as void, as such he cannot enter into an agreement of partnership. Section 30 of the Partnership Act provides that a minor may be admitted to the benefits of partnership with the consent of all the partners.

Minor As A Partner
 
 
According to Indian Contract Act an agreement of a minor is void, as void, as such he cannot enter into an agreement of partnership. Section 30 of the Partnership Act provides that a minor may be admitted to the benefits of partnership with the consent of all the partners.
 

Rights of Minor Partner

 
A minor admitted to the benefits of a Partnership has the following rights:

1. Right to share the profits.
2. Right to have the access to do the inspection
3. Right to file a suit for accounts or demand his share of property or profits.
4. Right to exercise option on attaining the age of majority, whether or not to continue in the firm.

Liabilities of Minor Partner


1. The liability of a minor is limited to the extent of his share in the firm and therefore, unlike other partners, he is not personally liable.

2. If the firm is declared insolvent, his share in the firm vests in the official receiver or assignee but a minor cannot be declared insolvent.

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