A agrees with B to carry passengers by taxi from Kanpur to Lucknow on the following terms, namely, B is to pay A Rs. 100 per mile per annum, and A and B 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.

This is a partnership under Section 13 of the Indian Partnership Act. The parties agree to carry on a business (taxi service) with a view to profit (sharing proceeds) and to share losses (costs of repairs/replacement). All essential elements of partnership - agency relationship, profit-sharing, loss-bearing, and mutual agency - are present.