Question:medium
Read the following statements: Assertion (A) and Reason (R).
Assertion (A): It is not compulsory to register a partnership firm as there are no penalties for non-registration.
Reason (R): An unregistered partnership firm can file a suit in any court against the firm or other partners for enforcement of any right arising from a contract or right conferred by the Partnership Act.
Read the following statements: Assertion (A) and Reason (R).
Assertion (A): It is not compulsory to register a partnership firm as there are no penalties for non-registration.
Reason (R): An unregistered partnership firm can file a suit in any court against the firm or other partners for enforcement of any right arising from a contract or right conferred by the Partnership Act.
Assertion (A): It is not compulsory to register a partnership firm as there are no penalties for non-registration.
Reason (R): An unregistered partnership firm can file a suit in any court against the firm or other partners for enforcement of any right arising from a contract or right conferred by the Partnership Act.
Show Hint
Unregistered partnership = No legal penalty,
but also = No legal remedy!
Register to enjoy full legal rights.
Updated On: Jan 14, 2026
- Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
- Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
- Assertion (A) is true, but Reason (R) is false.
- Assertion (A) is false, but Reason (R) is true.
Show Solution
The Correct Option is C
Solution and Explanation
Assertion (A) is correct: Registration of a partnership firm under the Indian Partnership Act, 1932 is not a legal requirement, and there are no penalties for failing to register.
Reason (R) is incorrect: An unregistered partnership firm is barred from filing lawsuits against third parties, other firms, or its own partners to enforce contractual rights. This prohibition serves as a legal incentive for registration.
Therefore, the assertion is true, but the reason is false.
Reason (R) is incorrect: An unregistered partnership firm is barred from filing lawsuits against third parties, other firms, or its own partners to enforce contractual rights. This prohibition serves as a legal incentive for registration.
Therefore, the assertion is true, but the reason is false.
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