Which combination of statements is true about partnership?
(A) Valid partnership can be formulated even without a written agreement between the partners.
(B) Methods of settlement of disputes among the partners can't be part of the partnership deed.
(C) If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner.
(D) Each partner carrying on the business is the principal as well as the agent for all the other partners.
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A) and (D) only
A partnership rests on an agreement among the partners, and the Partnership Act fills in the terms that the agreement leaves out.
(A) Valid partnership can be formulated even without a written agreement between the partners. Correct. The agreement can be oral or written; the Act does not require writing.
(B) Methods of settlement of disputes among the partners can’t be part of the partnership deed. Incorrect. The method of settlement of disputes is one of the usual contents of a partnership deed.
(C) If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner. Incorrect. When the deed is silent, no interest is charged on drawings; 6% p.a. is the rate for interest on a partner’s loan.
(D) Each partner carrying on the business is the principal as well as the agent for all the other partners. Correct. This is mutual agency: each partner binds the others by his acts and is bound by theirs.
NCERT (2026-27 edition):
|
