Q No. 5: CASE:

" X established X Medical Store on 1.1.2019. His two adult sons Y and Z are working in

the store to assist their father. On 30.6.2019, X died and his sons continued to run the store

as before. On 1.1.2020, they made a partnership agreement to run the store on equal basis of profit & loss without fixing the duration of partnership. On 1.3.2020, the firm obtained a loan of Rs. 100,000/-. On 1.6.2020 theyadmitted their nephew A as a partner. A is aged 17 years."

Answer the following questions:

i) What was the status of the store between the period from 1.7.2019 to 31.12.2019?

ii) What type of partnership came into being on 1.1.2020? Reason for answer?

iii) Could A be admitted as partner?

iv) Did A become liable for the loan of Rs. 100,000/-?

v) What are the essential elements for a valid partnership?

Note: Answers should be in detail according to Pakistani law and with 0% copying from internet