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Sole Proprietorship Firm legal heir ongoing contracts

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Sunanda Sanyal

5 Points Posted on 12 December 2023

After death of owner of a sole proprietorship firm is legal heir who is continuing the firm bound to continue ongoing contracts?

Replies (2)

Quick Summary

This discussion explores whether a legal heir is obligated to continue existing contracts when the owner of a sole proprietorship firm passes away. Generally, the legal heir is not responsible for the deceased's contracts. However, if the firm was registered under an act, the heir's continuation of the business will be subject to the provisions of that registration.

Sharath chandra

Accountant

1227 Points Posted on 20 December 2023

No. legal heir is not responsible for his father's/ mother's contacts.

RAJA P M

"Do the Right Thing...!!!"

128157 Points Posted on 20 December 2023

@ Mr Sunanda,

What is Your exact question...???

For general view,

In case the firm (proprietor) can't register under any act then legal heir can run the business.

But, in case registered then legal heir will follow up based on the provisions of the registration..