Vinod, a 23 year old, completed his graduation in banking. He decided to start a private banking business joining hands with his friends. They wanted to enter into a contract to form partnership and to share the profits and losses amongst them. In case of the above context what will be the maximum number of people (partners) who can form this partnership?

10 20 7 50

10

Partnership is the outcome of a contract. Thus: a) There must be at least 2 persons to enter into contract to form partnership. b) Minors cannot form a partnership firm as they are incompetent to enter into contract but can be admitted to the benefits of a running firm. c) If these people intend to do banking business, the maximum number can be ten otherwise twenty for the other business.