Atal and Lal are partners in a firm with no partnership deed. Atal wants to introduce his son Inder as partner but Lal objects to his proposal. Lal wants that profit should be distributed in ratio of their capitals, but Atal wants that it should be distributed equally. Who is right and wrong in these cases?
Answer & explanation
Correct answer: option 4
A person cannot be introduced as partner without the consent of all partners. Therefore, Inder cannot be admitted into partnership because Lal objects to it.
Profits shall be shared equally between Atal and Lal because in absence of partnership deed profits will be distributed equally.