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 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:
- A\text{(A) and (D) only}
- B\text{(A), (B) and (D) only}
- C\text{(C) and (D) only}
- D\text{(C) and (B) only}
Solution & Step-by-step Explanation
Let's assess the truth value of the claims:(A) True: A partnership agreement can be oral or written. A written deed is not mandatory for validity.(B) False: Dispute resolution mechanisms can be explicitly mapped out in a partnership deed.(C) False: If the deed is silent, no interest on drawings is charged at all.(D) True: Mutual agency is a core principle; every partner acts simultaneously as a principal and an agent.Thus, statements (A) and (D) are true.