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) Valid partnership can be formulated even without a written agreement between the partners. True. The agreement can be oral or written; the Partnership Act does not require writing, though a written deed avoids disputes.
(B) Methods of settlement of disputes among the partners can’t be part of the partnership deed. False. The deed can contain any terms the partners agree on, and the method of settling disputes is one of the usual ones.
(C) If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner. False. When the deed is silent, no interest is charged on drawings at all. The 6% rule of the Act applies to interest on a partner’s loan to the firm, which is a different thing.
(D) Each partner carrying on the business is the principal as well as the agent for all the other partners. True. This is mutual agency: a partner binds the others by his acts and is bound by theirs.
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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