Question

When is the Partnership Act enforced?

(a) When there is no partnership deed.

(b) When there is a partnership deed but there are differences of the opinion between the

partners.

(c) When capital contribution by the partners varies.

(d) When the partner’s salary and interest on capital are not incorporated in the partnership

deed. ​

Answer 1

Answer:

when there is no partnership deed

Answer 2

The correct answer is OPTION A: When there is no partnership deed.

• When two or more people agree to run a business together, a partnership deed is formed.
• This agreement includes all of the firm's major terms and conditions, such as profit/loss sharing, obligations, the admission of new partners, agreed-upon norms, salary, and so on.
• This document is significant because it can be used as a legal document if the company is ever sued.
• Because a Partnership Deed, also known as a Partnership Agreement, is registered under the Indian Registration Act of 1908, it cannot be destroyed while the partners are still in possession of it.