Position on attaining majority
A minor on becoming major or on knowing that he had been admitted to the benefit of partnership, whichever is later, must decide within 6 months whether or not he would like to become a partner in the firm by giving public notice of his intention. lf he does not give public notice and remain silent, it will be presumed that he has decided to become a partner in the firm.
(a) When minor decides to become partner
When a minor decides to become a partner in the firm, his position will be as follows:
1. His right and liabilities will be the same as those of other partners.
2. He becomes personally liable to creditors for all debts and obligations of the firm from the date of his admission to the benefit of partnership.
3. His share of profits and property in the firm shall remain the same as before unless altered by agreement.
(a) When minor decides not to become partner
When the minor on becoming major decides not to become a partner, his position will be as under:
1. His rights and liabilities continue to be those of a minor up to the date of his giving public notice.
2. His share of profit and property is not liable for any acts of the firm done after the date of public notice.
3. He can sue the partners for his share of property and profits in the firm.
When a minor after becoming major but before giving public notice represents himself as a partner in the firm, he shall be personally liable to any one who has on the faith of such representation granted credit to the firm.
Position of minor:
The position of a minor who had been admitted to the benefit of partnership and who on attaining the age of majority chooses to become a partner is not the same as that of 2 new partners. Such minor becomes liable to third parties for all debts and obligations incurred since the date he was admitted to the benefits of partnership and not since the date of his becoming a partner.
A minor can not become a partner in a firm since he does not possess the necessary capacity to contract. He may be admitted to the benefits of an already existing partnership firm with the express consent of all the existing partners. Such an agreement must be entered into by his guardian on his behalf with the other partners.