Question

Choose the correct answers from the alternatives given.
A partner can retire on __________.

• A. reaching the age of superannuation
• B. on the balance in the capital account reaching a certain amount
• C. in accordance with the Partnership Deed
• D. on the condition of his nominee becoming a partner

Answer 1

Answer: (C)

in accordance with the Partnership Deed

In accordance with the Partnership Deed, a partner is said to retire when other partners continue to carry on the partnership business and that partner who retires ceases to be a partner. There are three modes of retirement of a partner, which are as follows:

1. Any partner may retire at any time with the consent of all partners.

2. When the partnership deed expressly provides for the retirement of a partner; a partner may retire according to the terms of agreement between the partners.

3. When the partnership is at will, by giving notice in writing to all the other partners of his intention to retire.