Question

Assertion (A): If there are eight partners in a firm, a new partner cannot be admitted even if one partner does not agree to this.

Reason (R): A new partner can be admitted if the majority of partners agree on his admission.

In the context of the above two statements, which of the following is correct?

Options

• (A) and (R) both are correct and (R) correctly explains (A).

• Both (A) and (R) are correct but (R) does not explain (A).

• Both (A) and (R) are incorrect.

• (A) is correct, but (R) is incorrect.

Answer 1

(A) is correct, but (R) is incorrect.

Explanation:

Assertion (A) is correct because the Indian Partnership Act, 1932, requires the unanimous consent of all existing partners to admit a new partner. Even a single dissenting partner can prevent the admission. Reason (R) is incorrect because a mere majority agreement is not sufficient under the general law; full consensus is the required standard, unless the partnership deed specifically states otherwise.