Under the UPA, absent an agreement otherwise, upon dissolution, a partner is entitled to which of the following after payment of partnership creditors?
A) A share of profits in proportion to his capital contribution.
B) Shares of profits dependent upon the capital and time he contributed to the partnership.
C) Repayment of his loans to the partnership, capital contribution, and a share of the profits.
D) The UPA requires that the partners have an agreement or else they must seek a court order distributing the remaining assets.

Question

Quizplus · Accepted Answer

Under the Uniform Partnership Act (UPA), upon dissolution of a partnership and after payment of partnership creditors, a partner is entitled to repayment of his loans to the partnership, return of his capital contribution, and then a share of any remaining profits. This reflects the general principle that partners are entitled to be repaid their loans and capital contributions before any distribution of profits.

Under the UPA, Absent an Agreement Otherwise, Upon Dissolution, a Partner