Aaron and Yarun are carrying on a takeout pizza business as a partnership and Yarun has bought a car with his own money for use in the partnership business.After a few months, Yarun tells Aaron that he wants to use the car at night and on the weekends, but Aaron says it must be used exclusively for the partnership business.Since the car was paid for by Yarun, he can use it however he likes.

Question

Quizplus · Accepted Answer

Although Yarun may have paid for the car with his own money, once it is used for the partnership business, it becomes an asset of the partnership. Therefore, it must be used exclusively for the partnership business as agreed upon in the partnership agreement. If Yarun wants to use the car for personal use, he must get Aaron's consent and compensate the partnership accordingly.

Aaron and Yarun Are Carrying on a Takeout Pizza Business