Multiple choice

X and Yare partners in which of the following circumstances?

  1. X agrees Y to carry passengers by taxi from Delhi to Gurgaon on the followings 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 care, and to divide equally between them the proceeds of fares received from passengers.

  2. X and Y are co-owners of a house let to a tenant. X and Y divide the net rents (after deduction of the incidental taxes; etc.) between themselves.

  3. X and Y buy 200 bales of cotton agreeing to share the same between them.

  4. X and Y agree to work together as carpenters, but X shall receive all profit and shall pay wages to Y.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A partnership requires a business relationship with mutual agency and profit-sharing. Option A shows X and Y running a taxi business together, sharing both profits (fares) and costs (repairs), which meets the partnership criteria. Co-ownership (B) or joint purchases (C) without business operations don't constitute partnerships.

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