Legal Principle: Every partner is liable alone and jointly with other partners for the debts of a partnership firm incurred for the business. Every partner is an agent of every other partner while being a principal in his own right in the business ofthe partnership.
Fact Situation: Varun is a partner in a firm with Chinmoy and Jaffar. Jaffar purchases a car for his personal purpose and obtains credit for the same in the name of the partnership behind the back of the other partners. He fails to paythe due amount on the expiry of the period of credit.
Which of the following statements is the most appropriate in relation to the legal principle stated above?
Options:

Question

Examsnet · Accepted Answer

Correct Answer is :  Varun and Chinmoy are not liab le to pay for the car since Jaffar purchased it for his personal purpose.

CLAT 2018 Question Paper with answer key for online practice