Which combination of statements is true about partnership-

(A) Valid partnership can be formulated even without a written agreement between the partners.

(B) Methods of settlement of disputes among the partners can't be part of the partnership deed.

(C) If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner.

(D) Each partner carrying on the business is the principal as well as the agent for all the other partners.

Choose the correct answer from the options given below:

Analyzing each statement about partnership:

Statement (A): Valid partnership can be formulated even without a written agreement between the partners.

This is correct. Under the Indian Partnership Act, 1932, a partnership can be formed through oral agreement or even implied conduct. A written partnership deed is advisable but not mandatory for a valid partnership.

Statement (B): Methods of settlement of disputes among the partners can't be part of the partnership deed.

This is incorrect. The partnership deed can and often does include clauses about dispute resolution mechanisms like arbitration. This is actually a recommended clause in partnership deeds.

Statement (C): If the deed is silent, interest at the rate of 6% p.a. would be charged on the drawings made by the partner.

This is incorrect. As per the Indian Partnership Act, 1932, if the partnership deed is silent about interest on drawings, no interest is charged. Interest on drawings is applicable only if specifically mentioned in the partnership deed at the agreed rate.

Statement (D): Each partner carrying on the business is the principal as well as the agent for all the other partners.

This is correct. This is a fundamental principle of partnership law. Each partner acts as:

• An agent when dealing with third parties (their actions bind all partners)
• A principal for their own share in the partnership

Therefore, statements (A) and (D) are true.

Correct Option: 1