Essay on topic incoming and outgoing partners under partnership act
Answers
Answer:ģ
Explanation:
A new partner becomes liable for the debts and acts of the firm only from the date he is admitted as a partner. He cannot be held liable for the acts of the old firm.
A new partner may, however, agree to be liable for debts existing prior to his admission but such agreeing will not give to a prior creditor the right of suing him because of ‘absence of privily of contract.’
He will be liable to other co-partners only. The creditors can make him liable if he had agreed with them, expressly or impliedly, for being liable towards them for the past debts.Liability of a retiring partner:
A retiring partner continues to be liable for the acts of the firm done before his retirement. He may, however, free himself from his liability towards third parties for the debts of the firm incurred before his retirement by an agreement with such third parties and the partners of the reconstituted firm discharging the outgoing partner from all liabilities.
The remaining partners alone cannot give this freedom to the retiring partner. He may be discharged only if the creditors agree.
A retiring partner also continues to be liable for the acts of the firm, even after retirement, until public notice is given of the fact of retirement. Similarly, the partners of the reconstituted firm continue, to be liable for the acts of the retired partner though done after retirement, until public notice is given of the retirement.