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The general duties of partners are laid down in which section of the Indian Partnership Act, 1932?

Section 9 of the Indian Partnership Act, 1932 is titled “General duties of partners” and provides: 'Partners are bound to carry on the business of the firm to the greatest…

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The general duties of partners are laid down in which section of the Indian Partnership Act, 1932?

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Correct answer A

Section 9 of the Indian Partnership Act, 1932 is titled “General duties of partners” and provides: 'Partners are bound to carry on the business of the firm to the greatest common advantage, to be just and faithful to each other, and to render true accounts and full information of all things affecting the firm to any partner or his legal representative.' (By contrast, Section 10 deals with the duty to indemnify for loss caused by fraud, Section 11 deals with determination of rights and duties by contract, and Section 13 deals with mutual rights and liabilities.)

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Option A

Correct. Section 9 of the Indian Partnership Act, 1932 ('General duties of partners') provides that partners are bound to carry on the business of the firm to the greatest common advantage, to be just and faithful to each other, and to render true accounts and full information of all things affecting the firm to any partner or his legal representative.

Option B

Incorrect. Section 10 of the Indian Partnership Act, 1932 deals with the specific 'Duty to indemnify for loss caused by fraud', not the general duties of partners.

Option C

Incorrect. Section 11 of the Indian Partnership Act, 1932 deals with the 'Determination of rights and duties of partners by contract between the partners' (including agreements in restraint of trade).

Option D

Incorrect. Section 13 of the Indian Partnership Act, 1932 deals with 'Mutual rights and liabilities' of partners (such as remuneration, sharing of profits and losses, interest on capital/advances, and indemnity).

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