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Partnership
a b c are partners in a firm and d(a's wife) started a competing business. is a liable to account for the profit of his wife???
Replies (4)
Quick Summary
If A's wife started a different business then why would her profit will be accountable in partnership account
If she starts same competing business is she liable???
As per deed if she is partner in firm then she is liable
D(a 's wife) can do a competing business as per law, because there is no restriction regarding same in Partnership Act, 1932.
Partnership Act provides only for Partners can not engage himself in business which is completing to business of Partnership firm, but it's also as per Partnership agreement.
So, D can be do business, if it's not specifically restricted in partnership deed.
but, usually it's not happen because partnership is based on mutual understanding and cooperation between Partners. Partner are not Suppose to do the things which can affect the firm's business adversely.
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