Question

Mohan and Sham are partners in a firm. State whether the claim is valid if the partnership agreement is silent in the following matters:

"Mohan is an active partner. He wants a salary of Rs. 10,000 per year".

Options

• valid

• Invalid

• Cannot be determined.

• None of the above

Answer 1

Invalid

Explanation:

Unless the Partnership Deed expressly states otherwise, no partner is entitled to a salary or other remuneration for participating in the firm's business operations.