In relation to partnership law, explain the Liability of the following partners: Incoming partner, Infant partner and Outgoing partner in relation to Partnership law
Liability of Incoming partner, Infant partner and Outgoing partner in relation to Partnership law
- Incoming partner: Unless otherwise agreed, such a party is only liable for debts and other liabilities arising from the date he becomes a partner.
- Infant partner; Under section 12 of the partnership Act, an infant partner is not liable for debts and other liabilities of the firm. However his share in the property is liable. Under section 13, if an infant does not repudiate the partnership during infancy or within a reasonable time after attaining the age of majority, he is personally liable for the debts and other liabilities from the date he became a partner.
- Outgoing partner; The general is that if the debt or liability has been-incurred after the partner in question has left the firm then that partner will not be liable for the same. In the same way, if the debt or liability has been incurred before the partner joins then he or she will once again not be liable for it.