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(ii)
B is not to be responsible for any loss (iv)B is not to enter any contracts on behalf of
the firm.
Discuss the legal position of the firm.
1. NO, there must be atleast two persons and such persons must be competent.
2. NO, All the persons at the time of entering the contract must be competent. However,
after partnership is formed, a minor can be admitted to the benefits of partnership.
3. NO, there is no intention to carry on the business and to share the profits thereof.
4. NO, more than 20 is illegal association.
5. NO, more than 10 in case of banking business is illegal association.
6. NO, Sharing profit is a prima facie evidence but not conclusive. Mutual agency does not
exist.
7. NO, Sharing of profit is a prima facie evidence
8. NO
9. NO
10.YES
11.NO
12.NO
13.Yes, A and B are partners. In partnership , partners are free to agree to any terms as
regards sharing of profits. Again, sharing or losses is not necessary for becoming a
partner. So, also, partners may agree that on the dissolution of their partnership all the
assets will belong to one partner only.
14.By circumstances it is evident that M is only a clerk. Sharing of profit is not the sole test of
partnership.
15.B is a partner with A because to constitute a partnership neither contribution of capital nor
active participation in management of the business is essential.