WILFUL NEGLECT UNDER THE PARTNERSHIP ACT, 1932

Clause(f) of the wilful neglect of partner says that every partner is liable t indemnify the firm against loss

arising from his own wilfull neglect. The opening words of the section “subject to the contract between the

partners”.

Wilfull neglect means that degree of neglect shown by the abstention from an obvious duty attended by the

knowledge of the likely results of the abstention. The law requires from everyone is the diligence of a

reasonable man in the circumstances not merely reasonable to appears for himself. So every partner will e

liable for their act. For example if A had done the Fraud negligently but in partnership he will be liable and

will indemnify the loss for maintaining the business.

Another example is the wilful neglect comes under the fraud but there is the difference between the wilful

neglect and fraud. Section 10 a partner can in the case of the loss caused to a firm arising out of his wilful

neglect is the conduct of the business of the firm exempt himself from his liability to indemnify the firm for

this loss by the specific term between the partners whereas in the case of loss arising out of his fraud, his

liability is absolute and it can in no case be made subject to any contract contrary to it.

To indemnify for loss caused by fraud or wilful neglect: If any loss is caused to the firm because of a

partner's wilful neglect in the conduct of the business or fraud commit by him against a third party then such

partner must indemnify the firm for the loss.. To hold and use partnership property exclusively for the firm:

The partners must hold and use the partnership property exclusively for the purpose of business of the firm

not for their personal benefit.