Unit - 52 : Minor admitted to the benefits of a Partnership
Legal & Regulatory Aspects of Banking -
Unit - 52 : Minor admitted to the benefits of a Partnership As mentioned in the Indian Contract Act, 1872 a minor is not competent to enter into a contract . Hence he is not eligible to enter into a contract of partnership.
The minor has the right to share the property and profits of the firm as may be agreed upon by the partners and the minor can have access to the accounts of the firm .
The minor may or may not take a legal action ( by filing suit ) against the partners for payment of his share of the property or profits of the firm except when severing ( ending ) his connection with the firm.
A Contract with minor is void .
Legal Position after a minor attains majority : At any time within 6 months of his attaining majority , or of his obtaining knowledge that he had been admitted to the benefits of partnership ( whichever date is later ) the person may give notice to the effect whether he has elected to become a partner or not . This notice determines his position with regard to firm .