Minor as partner

Minor is a child who has not attained the age of majority.In Pakistan,the age of Minor is less than 18 years .A minor is not competent to contract so, he cannot enter into a contract because he could not fulfil the capacity to contract prescribed in Contract Act,1872( Section 11).

Relevant Provision:

Section 30 of Partnership Act 1932.

Example :

A ,B and C are partners of a Firm.A died and now with the consent of B and C the son of A who is a minor can be admitted to the benefits of existing Partnership.

In case of Becoming a partner :

If the minor becomes a partner, then his position will be as under :

His rights and liabilities will be similar to those of full fledge partner .

He becomes personal liable to third parties for the debt and obligations to the firm.

His share and profits remains the same unless altered by agreements .

In case of not becoming a Partner :

If the Minor does not become a partner ,then his position will be as under :

He is not liable for the acts of firm done after the date of public notice .

He is not entitled to sue the partners for his share of profit in the firm .

His shares in property will be given to him.

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