Question

On the death of a partner, his share in the goodwill is divided equally among continuing partners. (State True or False)

Answer 1

FALSE...

AT THE TIME OF DEATH OF PARTNER
GOODWILL GIVES TO HIS EXECUTOR.

Answer 2

Answer:

The given statement is false. When one of the partners in a business dies, the nominee or heir( legal representative) is given a chance to take his place. Hence, the share in the goodwill is also divided accordingly.

However, this can take place only when

1. there are more than two partners in the respective business and

2. the nominee is willing to take the partnership forward.