relationship of partnership arises from agreement and not from status explain
Answers
Answer:
Explanation:
Partnership is the form of business organization, where two or more persons can join together or jointly carrying on some business. It is an improvement over the 'sole-trade business', where one single individual with his own resources, skill and effort carries on his own business.
In a partnership, a number of persons could pool their resources and efforts and could start a much larger business. In case of loss also, the burden gets divided amongst various partners in a partnership.
According to Section 4 of the Indian Partnership Act, " The relation of partnership arises from contract and not from status; and , particular, the members of a Hindu undivided family carrying on a family business as such, or a Burmese Buddhist husband and wife carrying on business as such, are not partners in such business."
Answer:
Status does not imply partnership. A Hindu undivided family operating as a family business or a Burmese Buddhist husband and wife operating as a business as such are not partners in such a business because the relationship of partnership emerges from the contract and not from status.
Explanation:
- A partnership is a type of business structure where two or more people can work together or conduct a business together. It is an advance over the "sole-trader business," in which a single person operates his own business using just his own resources, talent, and effort.
- A number of people could combine their resources and efforts in a partnership to launch a much bigger firm. The burden is shared among the various partners in a partnership even in cases of loss.
- The members of a Hindu undivided family operating a family business as such, or a Burmese Buddhist husband and wife operating a business as such, are not partners in such a business, according to Section 4 of the Indian Partnership Act. "The relation of partnership arises from contract and not from status," it states.
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