CHAPTER VI DISSOLUTION OF A FIRM

Section 45: Liability for acts of partners done after dissolution

The Indian Partnership Act, 1932

(1) Notwithstanding the dissolution of a firm, the partners continue to be liable as such to third parties for any act done by any of them which would have been an act of the firm if done before the dissolution, until public notice is given of the dissolution:

Provided that the estate of a partner who dies, or who is adjudicated an insolvent, or of a partner who, not having been known to the person dealing with the firm to be a partner, retires from the firm, is not liable under this section for acts done after the date on which he ceases to be a partner.

(2) Notices under sub-section (1) may be given by any partner.

Questions on this section

1 question in 2 of our papers cite Section 45. Try these from the free papers:

1. P, Q and R were partners and were known as such to the firm's customers. The firm was dissolved, but no public notice of the dissolution was given. Some days later P bought goods in the firm name from T, an old customer who did not know of the dissolution, in the usual course of the kind of business the firm had carried on. Under Section 45 of the Indian Partnership Act, 1932, the price may be recovered from:

Practise questions on Partnership and Sale of Goods Acts