Which of the following refers to essential features of partnership?
1 Minors can be partner in a partnership firm subject to approval of his parents.
2 The relation of partnership arises from contract and not from status.
3 Any association initiated to do charity work is not partnership.
4. There is an implied authority that any partner can act on behalf of the firm.
1 Minors can be partner in a partnership firm subject to approval of his parents.
2 The relation of partnership arises from contract and not from status.
3 Any association initiated to do charity work is not partnership.
4. There is an implied authority that any partner can act on behalf of the firm.
Answer & explanation
Correct answer: option 1
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.