Multiple choice

X agrees with Y to carry passengers by taxi from Delhi to Gurgaon on the following terms, namely, Y is to pay X Rs. 100 per mile per annum, and X and Y are to share the costs of repairing and replacement of the cars, and to divide equally between them the proceeds of fares received from passengers. Choose the correct alternative.

  1. X and Y are partners

  2. X and Y are cab owners

  3. X and Y are co-owners

  4. Can't be decided
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A partnership exists when persons carry on business together with profit-sharing and contribution to capital. Here X and Y share fares (profits), contribute to repair/replacement costs (capital), and jointly operate taxi service - essential partnership elements under Indian Partnership Act.

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