Multiple choice

Assertion (A): When something of valuable nature is acquired by a partner in breach of his duty in good faith, it is taken to be acquired for the benefit of all the partners and has to be accounted for to the firm. Reason (R): Partnership is a trust.

  1. Both (A) and (R) are true and (R) is the correct explanation of (A).

  2. Both (A) and (R) are true but (R) is not the correct explanation of (A).

  3. (A) is true, but (R) is false.

  4. (A) is false, but (R) is true.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

When something of valuable nature is acquired by a partner in breach of his duty in good faith, it is taken to be acquired for the benefit of all the partners and has to be accounted for to the firm. Partnership is not a trust. It is a contract.

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