A and B entered into an agreement to carry on a business of manufacturing and selling toys.
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Question:
- A and B entered into an agreement to carry on a business of manufacturing and selling toys. Each one of them contributed Rs.35 lakhs as their capital with a condition that A and B will share the profits equally but the loss, if any, is to be borne by A alone. Referring to the provisions of the Indian Partnership Act, 1932, decide whether there exists a partnership between A and B.
- A). There is no partnership between A and B
- B). A is sub-partner of B
- C). There is partnership by holding out
- D). There is partnership between A and B, B is partner in profit only.
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date: