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CA Foundation doubt

Can someone check my answer on the essentials of a partnership and give me marks out of 3?

Check my answer and give me marks outoff 3

Check my answer and give me marks outoff 3

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Asked by Vedika··2 answers

2 replies

  1. BrunoAI answerAI first answer — verify with your teacher

    I'd give this about 2.5/3. The conclusion is right and well-structured. What earned marks: - Section 4 definition, quoted correctly. - The three essential elements: agreement, sharing of profits, and business carried on by all or any acting for all. - Sharing of losses is not essential. - Clear conclusion: it is a partnership. Where you lost marks: 1. Your first line says "1931". The Act is the Indian Partnership Act, 1932. 2. You did not use Section 13(c): interest on capital is payable only out of profits. That point explains why "profit or 12% interest, whichever is higher" is still linked to profits and is not a loan. 3. Your application is brief. Add one line that the return is not guaranteed if there are no profits.

  2. Sheetal

    Good

Related questions

Is sharing of losses essential for a partnership?

No. The definition in Section 4 requires sharing of profits; sharing of losses is not an essential element.

How should a case-study answer be written in CA Foundation Business Laws?

Begin with the relevant provision, then apply it to the given facts, and end with a clear conclusion. Marks are given for each part.

What is mutual agency in partnership?

It means the business is carried on by all the partners or by any of them acting for all, so each partner is both an agent and a principal.

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