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CSEET · Business Laws and Management · Elements of Law relating to Partnership and Limited Liability Partnership

Under the Indian Partnership Act, 1932, the mutual rights and duties of the partners of a firm are primarily determined by:

The mutual rights and duties of partners are determined by the contract between them, which can be express or implied from a course of dealing. The Act applies subject to this contract, so neither the Registrar nor a court fixes these rights at registration.

  1. AA contract between the partners, which may be express or implied by a course of dealingCorrect
  2. BThe directions of the Registrar of Firms
  3. CAn order of the court passed at the time of registration
  4. DThe rules framed by the Central Government for every firm

Explanation

Section 11(1) provides that, subject to the Act, mutual rights and duties of partners may be determined by contract between the partners. Such a contract may be expressed or implied by a course of dealing. The Registrar, courts and Central Government rules do not fix these rights by default.

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