- 8 Marks
Question
b) Kojo Mintah is a partner in a firm of surveyors. While travelling in the course of an approved duty in the firm’s car, he bought GH¢500 worth of fuel for the use of the car. He submitted the receipt of purchase to the managing partner for refund. The managing partner has refused to pay.
Required:
i) State TWO (2) liabilities imposed on partners and TWO (2) liabilities imposed on the firm by the Incorporated Private Partnership Act, 1962 (Act 152).
(4 marks)
ii) Advice Kojo Mintah on his claim. (4 marks)
Answer
i) The references are to sections 4, 10 and 14 of the Incorporated Private Partnership Act 1962, (Act 152) Section 4(1): On registration the Registrar shall certify under seal that the firm has been registered and is incorporated and the certificate shall state the names of the partners and that their liability is not limited. Section 10(1): From the date of registration, the firm is a body corporate under the firm name, distinct from the partners of whom it is composed of. Section 10(3): Although the firm is a body corporate, each partner in the firm is liable without limitation for the debts and obligations of the firm. However each patner is entitled to an indemnity from the firm and to contribution from the co- partners in accordance with the rights of that partner under the partnership agreement. Section 14: A partner in a firm is jointly and severally liable with the firm and the other partners for the debts and obligations of the firm incurred while that partner remains a partner. The firm’s liability to indemnify partners for just expenses made to support the business. (2 points @ 2 marks = 4 marks)
ii) Section 13 of Act 152 An Act or instrument related to a business of a firm and done or executed in firms name or in any other manner showing an intention to bind the firm by a person so authorised whether a partner or not is binding on the firm. Kojo Mintah could be advised to claim on the basis of Section 152. Section 15 subsection 1, the partner in the firm is jointly and severely liable with the firm and the other partners for the debt and obligations of the firm incurred while that partner remains a partner. (4 marks)
- Uploader: Dotse