Question

Which of the following most accurately explains the legal foundation governing the mutual rights and obligations of partners in a partnership firm, particularly in the absence of an express written contract?

• A. A formal offer made by one partner and accepted by others
• B. An agreement—express or implied—enforceable by law between all partners
• C. A mutual understanding based solely on trust and verbal communication
• D. An acceptance of business terms without the intention to create legal relations

Hint:

Partnership relations are governed by: \[ \mathrm{Lawful\ Agreement} \] which may be: \[ \mathrm{Express\ or\ Implied} \]

Answer 1

The Correct Option is B