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?

Question

KollegeApply · Accepted Answer

(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.

AChoose Your Answer