Multiple choice

A agrees with B to carry passengers by taxi from Delhi to Faridabad on the following terms, namely, B is to pay A Rs. 200 per kilometer per annum and to divide equally between them the proceeds of fares received from passengers. Choose the correct alternative.

  1. True

  2. False

  3. Partly true

  4. Cannot say

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

This represents a valid service contract arrangement. A provides transportation services and receives both a fixed payment and a share of revenue. This is a standard commercial agreement structure.