Timothy, Reuben, and John, three brothers, work in a partnership firm that specializes in organizing events for people. John's friend Sam visited their place of business and made some suggestions to John for the next event that he was handling. Timothy and Reuben were however, out on a business trip when Sam visited their place. John out of gratuity got Sam a gift out of the business account and asked him to join the partnership. This, at present, could not be possible because of the doctrine of _____.
A) delectus personae
B) corporation by estoppel
C) employment-at-will
D) family purpose
E) tenants in partnership

Question

Quizplus · Accepted Answer

The doctrine of delectus personae allows a partnership firm to choose its partners according to their skills, expertise, character, and reliability. Therefore, the decision to add a new partner should be made by all the partners collectively, and not by an individual partner. Also, the partnership firm's assets cannot be used for personal gratification or benefit of individuals. Hence, John's action of giving Sam a gift out of business account and asking him to join the partnership without the consent of Timothy and Reuben violates the doctrine of delectus personae.

Timothy, Reuben, and John, Three Brothers, Work in a Partnership