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    Question

    What is the basis for the relation of partnership,

    according to the Indian Partnership Act?
    A The relation of partnership arises from a contract and not from status Correct Answer Incorrect Answer
    B The relation of partnership arises from the status of the parties involved Correct Answer Incorrect Answer
    C The relation of partnership is based on a family agreement, regardless of a formal contract Correct Answer Incorrect Answer
    D The relation of partnership arises only when a business is carried on by a husband and wife Correct Answer Incorrect Answer
    E The relation of partnership arises from religious practices and not from a formal agreement Correct Answer Incorrect Answer

    Solution

    Section 5. Partnership not created by status: The relation of partnership arises from contract and not from status; and, in 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.

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