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The deed allows firm books to be kept online but passwords must be given to all partners. Which right is this clause linked to?

Answer and explanation

Correct answer: Right of access and inspection of accounts

Direct answer: Option A is correct. A partner has the right to access and inspect the firm’s books and records, subject to the partnership agreement and proper business practice. Keeping books online does not remove this right. Requiring every partner to receive the password is a practical way to ensure that each can view the accounts, verify entries, and monitor the firm’s affairs. Option A works because it directly concerns access to and inspection of accounting records. Option B is wrong because selling goodwill is a separate business decision and is not created by giving book passwords. Option C is wrong because access to books does not give a partner the power to stop drawings automatically. Option D is wrong because inspection rights do not allow a partner to waive or cancel loans. The underlying principle is transparency among partners: those who share the business should be able to examine its financial information. The clause supports information and oversight, not ownership of goodwill or unilateral control. Exam cue: books, records, passwords, and inspection point to the right of access to accounts.

Related tags

Books InspectionOnline AccountsPartnership Deed

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