Question

Assertion (A): When a clause in a partnership deed differs from provisions of the Partnership Act 1932, the clause in the partnership deed will be applicable.

Reason (R): Provisions of the Partnership Act 1932 will be applicable only when partners have not agreed on a matter.

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

Options

• 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

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

Explanation:

When partners have a written agreement (partnership deed), its terms will override the default provisions of the Indian Partnership Act, 1932. The Act applies only in the absence of any agreement between partners. So, both the assertion and the reason are true, and the reason correctly explains the assertion.