Partnership and Business Law

Option (3) is correct: Section 4 of Partnership Act states that 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. Sharing of losses is not an essential requisite under this section.

Option (3) is correct: In determining whether a group of persons is or is not a firm, or whether a person is or is not a partner in a firm, regard shall be given to the real relation between the parties as provided under Section 6 of the Act.

Option (1) is correct: Section 6 of Indian Partnership Act defines that in determining whether a group of persons is or is not a firm, or whether a person is or is not a partner in a firm, regard shall be given to the real relation between the parties. Option (2) is incorrect: Agency is a contract between two persons, in which one person is Principal and other is Agent. Option (3) is incorrect: Every partner is an agent of firm defined u/s 18 of Indian Partnership Act. Option (4) is incorrect: Partners in a partnership firm may be active partner and sleeping partner both.

Option (1) is correct: Under Section 7 of the Partnership Act, where no provision is made by contract between the partners for the duration of their partnership or for the determination of their partnership, the partnership is partnership at will.

A firm is dissolved by contingent dissolution on the death of a partner as the death of a partner is happening of an event. Contingent dissolution is used to dissolve the firm in case of happening of an event like death of a partner, partner becoming insolvent etc.

Right answer because any partner cannot transfer his interest in the firm to others without the consent of other partners, because every partner is concerned with firm's profits and losses.

Right answer Because in joint-stock company, one can transfer freely his or her shares to others which is a public company. There is no restriction on transferring share to others in public company. One can sell his shares easily and freely and withdraw his membership from the company when he wishes to do so.

Right answer because if the firm is not registered a third party can sue the unregistered firm for its claim. So this is not a consequence ( result) of non-registration of a partnership firm, since third party is not related to it. The third party can sue the partnership firm for its claims, since there is no error on part of third party, if the firm is not registered.   

The maximum limit is fixed by the Companies Act 1956, and not by the Partnership Act 1932.

An Agreement is required (written or implied) to form a partnership. Partnership comes into existence by an agreement.

Yes, it is correct. A partner's current accounts are opened only when capital accounts are fixed.

Interest on loan is a charge against profit. Interest on loan will be paid @ 6% p.a. to the partner.

It is the correct answer, as the term 'Per Annum' is missing.

When a ratio is not given or there is no partnership deed, profits will be shared equally.

Right answer because  it is an essential condition to be called as partner of firm that he must share profits, whether he gets the salary and interest or not, according to Indian Partnership Act 1932.