Question

Assertion (A): Partners are principals but not the agents of other partners.

Reason (R): Partners are principals as well as agents of other partners.

In the context of the above two statements, which of the following is correct?

पर्याय

• Both (A) and (R) are true, but (R) is not the correct explanation of (A).

• Both (A) and (R) are true and (R) is the correct explanation of (A).

• Both (A) and (R) are false.

• (A) is false, but (R) is true.

Answer 1

(A) is false, but (R) is true.

Explanation:

Partners are both principals and agents of each other in a partnership firm. This means they can bind the firm and the other partners by their actions (as agents) and are also bound by the actions of others (as principals). Hence, the assertion is false, but the reason is true and correctly states the legal nature of partners.