June, Gene, and Jerry, friends for 15 years, have investigated forming a partnership to build houses. They plan to each contribute an equal amount of capital to the business. Why would a written partnership agreement be important for them?

1.the partnership cannot exist without a formal agreement

2. oral agreements are not legally binding

3. a partnership arrangement would allow them to vary the terms of their working arrangement from those prescribed by provincial partnership legislation

4. a formal agreement would make the partnership a separate legal entity from the partners

A.2 AND 3

B.3 ONLY

C.1 AND 3

D.3 AND 4