X, a minor was admitted to the benefits of partnership, consisting of A, B and C, three adult partners. Within six months after attaining majority, X gives notice that he has become a regular partner. But A, B and C refuse to take X as partner. Is the stand of A, B and C justified?

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  • X, a minor was admitted to the benefits of partnership, consisting of A, B and C, three adult partners. Within six months after attaining majority, X gives notice that he has become a regular partner. But A, B and C refuse to take X as partner. Is the stand of A, B and C justified?
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Answer:

Sec. 11 of the Indian Contract Act clearly provides that a minor is not competent to enter into any contract. Since partnership is also a contract, a minor cannot make a valid contract and hence he cannot become a partner in a firm.

 

However, Sec. 30 of the Partnership Act provides that, though a minor cannot become a partner, with the consent of all the partners, he may be admitted to the benefits of partnership.

 

Sec. 30(5) states that at any time within 6 months of the minor attaining majority or of his obtaining knowledge that he has been admitted to the benefits of partnership, whichever date is later, such person may give public notice that he has elected to become a partner (or not) and such notice shall determine his position as regards the firm.In the above case, the minor X, on attaining majority, within a period of 6 months, gives notice as to his intention of becoming a regular partner in the firm, in full conformity with the legal formality.

Last Updated On January 31, 2018
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