Colin, Demi, and Erin agree to be partners in Fajita Pizza, splitting the profits equally. Colin contributes 65 percent of the capital. When Fajita Pizza is dissolved, its liabilities are greater than its assets. In the absence of a contrary agreement, the losses are paid by

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In the absence of a contrary agreement, partners share losses in the same proportion as they share profits. Since profits are split equally, losses are also split equally.

Colin, Demi, and Erin Agree to Be Partners in Fajita