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.
Tags : Business Environment and Law-Performance And Discharge Of Contracts
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