Minor's admission to partnership benefits creates limited entitlement and contingent personal liability upon election to join as partner. Minors may be admitted to the benefits of a firm with unanimous partner consent, granting an agreed share of property and profits and rights to inspect accounts; that share is liable for firm acts while the minor remains personally immune. On attaining majority or learning of admission the person may elect to become or not become a partner within the statutory period, with failure to elect resulting in partnership. Election to join converts the minor into a partner with personal liability for prior firm acts; election not to join ends liability of the share from notice and permits suit for the share under severance valuation rules. The burden of proving ignorance of admission after the period rests on those asserting it.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Minor's admission to partnership benefits creates limited entitlement and contingent personal liability upon election to join as partner.
Minors may be admitted to the benefits of a firm with unanimous partner consent, granting an agreed share of property and profits and rights to inspect accounts; that share is liable for firm acts while the minor remains personally immune. On attaining majority or learning of admission the person may elect to become or not become a partner within the statutory period, with failure to elect resulting in partnership. Election to join converts the minor into a partner with personal liability for prior firm acts; election not to join ends liability of the share from notice and permits suit for the share under severance valuation rules. The burden of proving ignorance of admission after the period rests on those asserting it.
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