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Section 10 of partnership act

Corporate & Other Laws

What it's means a partner cannot contract out of his liability for fraud

SHARMA MUKESH

CA Inter

★ 11K+

29-Apr-22 12:37

172

Answers (2)

Section 10 states "Duty to indemnify for loss caused by fraud.â??Every partner shall indemnify the firm for any loss caused to it by his fraud in the conduct of the business of the firm." That means if partner causes fraud, he will make good the loss to firm due to such fraud

Sudha Reddy

CA Final

★ 20K+

29-Apr-22 12:41

"partner cannot contract out of his liability for fraud" means the partner cannot say he will not fulfill the liability which arose due to the fraud, he / she has to make good such liability / loss to the firm

Sudha Reddy

CA Final

★ 20K+

29-Apr-22 12:42