Q.Define Partnership.

A partnership is formed by an agreement, option (b).

Under the Indian Partnership Act, 1932, partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. The very foundation of a partnership is a contract (agreement) among the partners; this agreement may be oral or written, and when written it is called the partnership deed.

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The answer is option (b) agreement.

According to the Indian Partnership Act, 1932, partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. The key point is that this relationship arises out of a contract (agreement), not out of status, birth, friendship or any government direction. The agreement may be oral or writte …

The correct answer is (a) agreement. Partnership is the result of an agreement (contract) between persons, not of status, relationship or government direction.

Under the Indian Partnership Act, 1932, partnership is "the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all." The key word is agreed:

• Partnership arises from an agreement — a voluntary contract among the partners. This may be oral or written (a written one is the Partnership Deed). Hence (a) is correct.
• It is not created merely by a relationship among persons — for example, members of a Hindu Undivided Family are related but that is not a partnership. …