Multiple choice

The relationship of partnership arises out of

  1. an agreement

  2. statute

  3. operation of law

  4. Both (1) and (2)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

As per statute, partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. Existence of an agreement is essential for partnership. An agreement between the partners may be expressed or implied. Thus, the relationship of partnership arises out of both statute as well as an agreement.

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