Legal Principle: A partner is liable for the debts incurred by the other partners in the course of partnership.Factual Situation: Satwik and Prateek enter into a partnership to produce a film, wherein Satwik also directs the movie. The movie bombed at the box office. Consequently, they run into financial difficulties and the partnership ends. Prateek goes to Abbas to borrow some money, which Abbas understands is for repaying the debts from the partnership. Prateek takes the money and absconds to Malibu. Abbas sues Satwik for the amount. Decide (AILET 2015)Decision:

🎲 Try a Random Question  |  Total Questions in Quiz: 566  |  🧠 Study this quiz with Flashcards
This question is part of a full practice quiz:
Legal Aptitude Test — practice the complete quiz, review flashcards, or try a random question.

Each question consists of legal principle(s) (hereinafter referred to as 'principle') and facts. Such proposition may or may not be true in the real and legal sense, yet you have to conclusively assume them to be true for the purposes of this section. You have to apply the principles to the given facts to arrive at the most reasonable conclusion. Only one of the alternatives, i.e., (A), (B), (C), or (D) is the most reasonable conclusion. Remember: you must not rely on any principle except the principles that are given for every question.

Legal Principle: A partner is liable for the debts incurred by the other partners in the course of partnership.<br>Factual Situation: Satwik and Prateek enter into a partnership to produce a film, wherein Satwik also directs the movie. The movie bombed at the box office. Consequently, they run into financial difficulties and the partnership ends. Prateek goes to Abbas to borrow some money, which Abbas understands is for repaying the debts from the partnership. Prateek takes the money and absconds to Malibu. Abbas sues Satwik for the amount. Decide (AILET 2015)<br>Decision:






ADVERTISEMENT