Multiple choice

The foundation of a partnership is contract which may be express or implied.

  1. True

  2. False

  3. Partly true

  4. Cannot say
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A Correct answer
Explanation

The foundation of a partnership is indeed a contract, which can be either express (written or oral agreement clearly establishing the partnership) or implied (inferred from the conduct of the parties showing they intended to form a partnership). This contractual basis distinguishes partnership from other business relationships and creates mutual rights and obligations between partners.

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