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CS Professional · CSR and Social Governance · Partnership Firms

Asha and Bharat in Pune start a stationery trading business under a written deed that records only their profit-sharing ratio. The deed says nothing about how long the firm will run or how it may be ended. What kind of partnership is this?

It is a partnership at will. The deed provides neither a duration nor any method of determining the partnership, and under the Indian Partnership Act, 1932 that silence on both points makes the partnership one at will.

  1. APartnership at willCorrect
  2. BParticular partnership
  3. CPartnership for a fixed term
  4. DPartnership by status

Explanation

Where the contract makes no provision for the duration of the partnership or for its determination, the partnership is a partnership at will. The deed here is silent on both. A fixed term or a particular venture would need a stated period or a stated undertaking.

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