Aisha and Ben form a partnership with no partnership deed. Ben wants to take a major financial decision alone. Which of the following best describes the legal position?

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Question

Aisha and Ben form a partnership with no partnership deed. Ben wants to take a major financial decision alone. Which of the following best describes the legal position?

Accepted Answer

Ben requires the agreement of Aisha as partners have equal rights without a deed — Without a partnership deed, the Partnership Act (the default legal framework) applies, giving all partners equal rights in decision-making regardless of capital contributed. Option A is incorrect as capital contribution does not automatically grant seniority without a deed. Option C is wrong as Aisha retains equal rights under default law. Option D is incorrect as the business does not need to be dissolved.

Answer

Ben can act alone as senior partner since he contributed more capital

Answer

The business must be dissolved before any decision can be made

Answer

Ben requires the agreement of Aisha as partners have equal rights without a deed

Answer

Aisha has no rights because no formal agreement was signed

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