Question

Under what circumstances, a partner can get exemption from sharing losses in a firm?

• A. If he is a senior citizen
• B. If he is minor
• C. If he is retiring partner
• D. All of the above

Hint:

A minor in partnership: \[ \mathrm{Shares\ profits\ but\ is\ not\ personally\ liable\ for\ losses} \]

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
According to the general rule of partnership, all partners share both profits and losses.
However, Section 30 of the Indian Partnership Act, 1932 provides a specific exception regarding minors.
Step 2: Detailed Explanation:
A minor cannot be a partner in a firm because they cannot enter into a contract.
However, with the consent of all existing partners, a minor may be admitted to the "benefits" of an existing partnership.
Key characteristics of a minor's position:
1. They have a right to share profits.
2. Their liability is limited only to their share in the firm's property.
3. They are not personally liable for the losses of the firm.
Senior citizens or retiring partners do not have such statutory exemptions unless specifically mentioned in a partnership deed (and even then, retiring partners remain liable for acts done while they were partners).
Step 3: Final Answer:
A minor partner is exempted from sharing losses personally.