Which of the following is not a features of partnership:
Which of the following is not a features of partnership:
Solution
Looking at each option to identify which is NOT a feature of partnership:
Option 1 correctly states that partnership requires at least two persons coming together. According to the Indian Partnership Act, 1932, minimum two persons are needed to form a partnership (maximum 50 as per Companies Act provisions).
Option 2 correctly describes partnership as arising from an agreement between two or more persons to carry on business and share profits and losses. This is the fundamental definition under Section 4 of the Partnership Act.
Option 3 correctly states that the agreement must be to carry on some lawful business. Without business activity, there cannot be a partnership.
Option 4 states that business may be carried on by all partners but any one of them can't act for all. This statement is incorrect and contradicts a key feature of partnership.
In reality, partnership operates on the principle of Mutual Agency. This means:
- Every partner is both an agent and a principal
- Any partner can act on behalf of all other partners
- Acts done by one partner in the ordinary course of business bind the entire firm
- Each partner can represent and bind all other partners through their actions
Since Option 4 contradicts the principle of mutual agency by stating that one partner cannot act for all, it is NOT a feature of partnership.
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