By virtue of which section of the Indian Partnership Act 1932, partnership is defined as 'the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all'.
By virtue of which section of the Indian Partnership Act 1932, partnership is defined as 'the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all'.
Solution
✅ Correct Option: 2
Section 4 of the Indian Partnership Act 1932 defines partnership.
According to Section 4, partnership is defined as "the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all."
This definition highlights three essential elements of a partnership:
- There must be an agreement between persons
- The agreement must be to share profits of a business
- The business must be carried on by all partners or any of them acting for all
Section 4 is the foundational provision that establishes what constitutes a partnership under Indian law. All other provisions of the Act are based on this primary definition.
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