Minor and Partnership Firms & Effect of Non-Registration(Indian Partnership Act, 1932 – Sections 30 & 69)
Minor and Partnership Firms & Effect of Non-Registration (Indian Partnership Act, 1932 – Sections 30 & 69) Introduction The Indian Partnership Act, 1932 governs the formation, rights, duties, and liabilities of partners in a partnership firm. A partnership is based on mutual consent , and every partner is expected to be competent to contract under Section 11 of the Indian Contract Act, 1872 . This means a minor (below 18 years) cannot enter into a valid contract. However, under the Partnership Act, a minor can be admitted to the benefits of partnership , though he cannot be a full partner . The law also talks about the registration of partnership firms . While registration is not compulsory, non-registration affects the firm’s legal rights and remedies. A. Minor and Partnership Firms (Section 30 of the Partnership Act, 1932) 1. Who is a Minor? A minor is a person who has not completed 18 years of age (as per the Indian Majority Act, 1875). Since minors ca...