Q33. A, B and C are partners in a firm manufacturing auto part. Their firm is not registered. In order to
increase the earnings of the firm. B decided to use low quantity raw materials without the knowledge of A
and C. As a result, many accidents were reported by the consumers and a case has been filed against the
firm.
a) Is this wrong act of B is binding on the A and C?
b) State the feature related to this?
c) can a consumer file a case on unregistered firm
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Solution :
(a) Yes, the wrong act of B is binding on A and <br> (b) Mutual Agency <br> ( c ) Yes, outsiders can file a case on unregistered firm <br> (d) No, partners of unregistered firm can not file can not file a case on each other.
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