CA CPT Model Test Paper 13 with solutions for online practice

Question : 71 of 200

Marks: +1, -0

A & B are partners in a partnership firm. A introduced C, a former partner, as his partner to D. C remained silent at that moment, but later on informed D that he is actually a former partner of the firm. C had not issued any public notice in the year of his retirement from the partnership firm. D, a trader knowing well that only A & B are the partners of the firm, supplied 500 refrigerators to the firm on credit. The credit period expired and D did not get the price of his supplies. D filed a suit against A & C for the recovery of price. In light of the above circumstances answer which of the following is correct:

C is liable for the price to D, only if the element of fraudulent intention is present.
C is liable for the price to D, irrespective of the fact, whether the element of fraudulent intention is present or not.
C is not liable for the price to D.
C is liable to D because he had not issued any public notice of his retirement from the partnership firm.

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