In the absence of any express or implied agreement to the contrary

Question

Quizplus · Accepted Answer

Choice E is correct because in the absence of any express or implied agreement, a partnership is governed by default rules under the Uniform Partnership Act. The UPA provides that no partner is entitled to payment for acting in the partnership business (Choice B), and partners share equally in partnership capital and profits and are equally responsible for losses (Choice C). Additionally, partners are entitled to interest on their capital contributions before profits are ascertained (Choice D). As for admitting a new partner, a majority of the partners can make that decision without an agreement to the contrary (Choice A), which is not the case here. Therefore, Choices B, C, and D are correct, while Choice A is not.

In the Absence of Any Express or Implied Agreement to the Contrary