Multiple choice

Section 6 of the partnership Act states that the relationship arises from the contract and not from status.

  1. True

  2. False

  3. Partly true

  4. Cannot say
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A Correct answer
Explanation

Section 6 of the Partnership Act explicitly states that partnership is the relation between persons who have agreed to share the profits of a business. The use of 'agreed' confirms it arises from contract, not from status or inheritance. This foundational principle distinguishes partnership from relationships based on family status or property rights.

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