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X agrees with Y who is goldsmith to buy and furnish gold to Y, to be worked up by him and sold, and that they shall share in the resulting profit or loss. The contract between X and Y is that of
- a)Partnership
- b)Association of goldsmith
- c)Contract for labour work
- d)Contract of Sale
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
X agrees with Y who is goldsmith to buy and furnish gold to Y, to be w...
Contract Between X and Y is Partnership
The given scenario is an example of a partnership agreement between X and Y. Let's understand why it is a partnership agreement.
Definition of Partnership
Partnership is an agreement between two or more persons who agree to carry on a business venture together with the aim of earning profits. The persons who enter into the partnership agreement are known as partners.
Characteristics of Partnership
The following are the characteristics of a partnership agreement:
- Two or more persons are required to form a partnership.
- There must be an agreement between the partners.
- The aim of the partnership is to earn profits.
- The profits and losses are shared among the partners.
- The liability of the partners is unlimited.
- The partnership is dissolved on the death or insolvency of a partner.
Analysis of the Scenario
In the given scenario, X and Y have entered into an agreement to carry on a business venture together. X has agreed to furnish gold to Y, who is a goldsmith, to be worked up by him and sold. The profits and losses resulting from the sale of gold will be shared between X and Y.
Therefore, the given scenario fulfills all the characteristics of a partnership agreement:
- X and Y have agreed to carry on a business venture together.
- The aim of the partnership is to earn profits.
- The profits and losses resulting from the sale of gold will be shared between X and Y.
- The liability of the partners is unlimited.
Conclusion
Hence, it can be concluded that the contract between X and Y is a partnership agreement. In a partnership agreement, the partners share the risks and rewards of the business venture. It is important for the partners to have a clear understanding of their roles and responsibilities, as well as the terms and conditions of the partnership agreement.
The given scenario is an example of a partnership agreement between X and Y. Let's understand why it is a partnership agreement.
Definition of Partnership
Partnership is an agreement between two or more persons who agree to carry on a business venture together with the aim of earning profits. The persons who enter into the partnership agreement are known as partners.
Characteristics of Partnership
The following are the characteristics of a partnership agreement:
- Two or more persons are required to form a partnership.
- There must be an agreement between the partners.
- The aim of the partnership is to earn profits.
- The profits and losses are shared among the partners.
- The liability of the partners is unlimited.
- The partnership is dissolved on the death or insolvency of a partner.
Analysis of the Scenario
In the given scenario, X and Y have entered into an agreement to carry on a business venture together. X has agreed to furnish gold to Y, who is a goldsmith, to be worked up by him and sold. The profits and losses resulting from the sale of gold will be shared between X and Y.
Therefore, the given scenario fulfills all the characteristics of a partnership agreement:
- X and Y have agreed to carry on a business venture together.
- The aim of the partnership is to earn profits.
- The profits and losses resulting from the sale of gold will be shared between X and Y.
- The liability of the partners is unlimited.
Conclusion
Hence, it can be concluded that the contract between X and Y is a partnership agreement. In a partnership agreement, the partners share the risks and rewards of the business venture. It is important for the partners to have a clear understanding of their roles and responsibilities, as well as the terms and conditions of the partnership agreement.
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Community Answer
X agrees with Y who is goldsmith to buy and furnish gold to Y, to be w...
Partnership business, as both the parties have decided to share the profit/ losses, thats the reason it will be partnership.
in response to other options, it is not an association of goldsmith as in association, there is no contract.
Contract for labour will not be there, as there is no labour work involved.
it will not be contract of sale, as it is no contract for a particular sale.
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X agrees with Y who is goldsmith to buy and furnish gold to Y, to be worked up by him and sold, and that they shall share in the resulting profit or loss. The contract between X and Y is that ofa)Partnershipb)Association of goldsmithc)Contract for labour workd)Contract of SaleCorrect answer is option 'A'. Can you explain this answer?
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X agrees with Y who is goldsmith to buy and furnish gold to Y, to be worked up by him and sold, and that they shall share in the resulting profit or loss. The contract between X and Y is that ofa)Partnershipb)Association of goldsmithc)Contract for labour workd)Contract of SaleCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about X agrees with Y who is goldsmith to buy and furnish gold to Y, to be worked up by him and sold, and that they shall share in the resulting profit or loss. The contract between X and Y is that ofa)Partnershipb)Association of goldsmithc)Contract for labour workd)Contract of SaleCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X agrees with Y who is goldsmith to buy and furnish gold to Y, to be worked up by him and sold, and that they shall share in the resulting profit or loss. The contract between X and Y is that ofa)Partnershipb)Association of goldsmithc)Contract for labour workd)Contract of SaleCorrect answer is option 'A'. Can you explain this answer?.
X agrees with Y who is goldsmith to buy and furnish gold to Y, to be worked up by him and sold, and that they shall share in the resulting profit or loss. The contract between X and Y is that ofa)Partnershipb)Association of goldsmithc)Contract for labour workd)Contract of SaleCorrect answer is option 'A'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about X agrees with Y who is goldsmith to buy and furnish gold to Y, to be worked up by him and sold, and that they shall share in the resulting profit or loss. The contract between X and Y is that ofa)Partnershipb)Association of goldsmithc)Contract for labour workd)Contract of SaleCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for X agrees with Y who is goldsmith to buy and furnish gold to Y, to be worked up by him and sold, and that they shall share in the resulting profit or loss. The contract between X and Y is that ofa)Partnershipb)Association of goldsmithc)Contract for labour workd)Contract of SaleCorrect answer is option 'A'. Can you explain this answer?.
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