Question

Fill in the blank by choosing the appropriate answer from the choices:
6. Partnership comes into existence as a result of ________ among the partners.

Hint:

A written agreement among partners is specifically called a "Partnership Deed". It helps prevent future disputes by clearly laying down the terms and conditions.

Answer 1

Step 1: Understanding the Concept:
A partnership is essentially a contractual relationship. The very foundation of this relationship is mutual consent.

Step 2: Detailed Explanation:
According to Section 4 of the Indian Partnership Act, 1932, a partnership is defined as the "relation between persons who have agreed to share the profits of a business...". This implies that a partnership does not arise from status, operation of law, or inheritance, but strictly from a voluntary agreement (which can be oral or written) between the individuals involved.

Step 3: Final Answer:
Partnership comes into existence as a result of an Agreement.