Question

$A,B$ and $C$ are partners in a firm. They do not have a Partnership Deed. At the end of the first year of the commencement of the firm, they have faced the following problems:
$B$ wants that the partners should be allowed to draw salary but $A$ and $C$ do not agree.
State how you will settle these disputes if the partners approach you for the purpose.

Answer 1

In the given case, A and C are correct.

In the absence of partnership deed, no partner can claim salary for the work done by them for the firm.

In order to be eligible to draw salary,they need to form a partnership deed and include the provision regarding payment of salary to the partners and it should be signed by all of them.

So, B contention regarding salary payment is wrong.