If the partners agree on a formula to share income and say nothing about losses, then the losses are shared using the same formula.

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Quizplus · Accepted Answer

This is a common provision in partnership agreements known as the "default rule." It assumes that if the partners don't say anything about how losses should be allocated, they would want to split them in the same way as they split profits. However, partners can always agree on a different method for dividing losses in their partnership agreement.

If the Partners Agree on a Formula to Share Income