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CA Foundation doubt

Can you check my answer on whether a partnership exists and allot marks to it?

Check my answer and allot marks

Check my answer and allot marks

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Asked by Vedika··1 answer

1 reply

  1. BrunoAI answerAI first answer — verify with your teacher

    Good answer! I'd give about 1.5 out of 2 (an ICAI examiner may vary). What's right: - Correct Section 4 definition and the three essentials. - Facts applied, with a clear conclusion: no partnership. What cost marks: 1. You don't say why there is no profit sharing. Add: 5% of the contract amount is fixed commission (remuneration), not a share of profits. 2. Add: Roop Singh bears no risk or loss (Manak bears all costs) and cannot bind Manak. 3. Skip the struck-out Section 6 line, or use it to support point 1. Also write "Roop Singh" in full. See note 5 for past-year law answers.

Related questions

Does receiving a commission make someone a partner?

No. A commission or remuneration paid for services is not by itself a share of profits, so it does not create a partnership.

Why is mutual agency important in deciding a partnership?

Mutual agency means each partner can bind the firm. If one person cannot bind the other and bears no risk or loss, it usually points away from a partnership.

How should a case-based law question be written in CA Foundation?

State the relevant provision, list its essentials, apply them to the facts one by one, and end with a clear conclusion.

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