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:
$A$ and $B$ having contributed larger amounts of capital, desire that the profits should be divided in the ratio of their capital contribution but C does not agree.
State how you will settle these disputes if the partners approach you for the purpose.

Answer 1

In the given situation A and B are wrong in their claims.

In the absence of partnership deed,the profits should be divided equally among the partners irrespective of the amount of capital they have contributed.

Though A and B have contributed larger amounts of capital,still they have to share profits equally along with C.