A, B and C as partners in a partnership stipulated and mutually agreed that A shall not share in the profits, and losses. Is the agreement valid as among the partners only and not against third persons? A. Yes, because among the partners it is valid to exempt one from sharing in the profits and losses. B. Yes, valid as long as third persons are not prejudiced. C. Not valid stipulation exempting a partner from sharing profits and losses. D. Not valid as against third persons or partnership creditors.
A, B and C as partners in a partnership stipulated and mutually agreed that A shall not share in the profits, and losses. Is the agreement valid as among the partners only and not against third persons? A. Yes, because among the partners it is valid to exempt one from sharing in the profits and losses. B. Yes, valid as long as third persons are not prejudiced. C. Not valid stipulation exempting a partner from sharing profits and losses. D. Not valid as against third persons or partnership creditors.
Chapter21: Partnerships
Section: Chapter Questions
Problem 6BCRQ
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Question
A, B and C as partners in a partnership stipulated and mutually agreed that A shall not share in the profits, and losses. Is the agreement valid as among the partners only and not against third persons?
A. Yes, because among the partners it is valid to exempt one from sharing in the profits and losses.
B. Yes, valid as long as third persons are not prejudiced.
C. Not valid stipulation exempting a partner from sharing profits and losses.
D. Not valid as against third persons or partnership creditors.
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