Ritesh and Hitesh are childhood friends. Ritesh is a consultant whereas Hitesh is an
architect. They contributed equal amounts and purchased a building for 2 crores. After a
year, they sold it for 3 crores and shared the profits equally. Are they doing the business
in partnership? Give reason in support of your answer.
Answers
Answered by
2
A partnership
Explanation:
- For a partnership to take place there is a need for a mutual collaboration between two to twenty people. These people are the partners in the business which has an unlimited liability and no separate legal identity. Furthermore, the partnership is legalized via a partnership deed.
- Considering that there isn't a partnership deed involved and they both have different regular day jobs, one a consultant and another the architect, seems like they merely brought the building together in friendship.
- Both saw the common goal of making money so they put in equal amounts and shared equal profit that they made out of it.
- So, no, in my opinion since there was no partnership deed involved that didn't legalize their partnership. And on top of that there were also no duties.
Please also visit, https://brainly.in/question/15664404?answeringSource=feedPopular%2FhomePage%2F112
Similar questions