Question

Explain the following with the aid of examples:
(a) Four (4) liabilities of incoming and outgoing partners (10 marks)

(b) Five (5) grounds upon which the Registrar can lawfully refuse to register a partnership

Answer 1

Liabilities of incoming and outgoing partners are as follows

• An individual who is accepted as a partner in a firm is not liable for anything before he or she becomes a partner.
• An individual who is accepted as a General partner is not liable for anything before he or she becomes a General partner.
• A partner who decides to retire from the firm is liable for partnership obligations which were incurred before the partner's retirement.
• A partner who decides to retire from the firm is liable for the firm's liability which was incurred before the partners retirement for which he was liable.

Registrars can refuse to register a deed only on the following grounds:

• If the property mentioned in the deed papers does not come under his jurisdiction
• If the person who is getting his deed registered himself refuses the registration of the deed
• If the seller is a minor/ insane who does not know how much area is being sold and for what cost
• If the Power of Attorney holder has died or, the Attorney has been cancelled or if the rights of sale of the property are not mentioned in the Power of Attorney.
• If any court of law has put a stay order on the deed
• If the actual area owned is less than the area that has been put to sale
• If the identity of the seller is dubious and it is not sure of the seller is or not the actual property owner
• If there is cutting or overwriting anywhere in the dee