Multiple choice

The relation of partnership according to Section 5 of Indian Partnership Act, 1932 arises from

  1. status

  2. contract

  3. friendship

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Under Section 5 of 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 relationship fundamentally arises from contract between the parties, not from status, family ties, or friendship. The agreement can be express or implied from conduct.

Keep practicing — related questions