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Partnership Deed

X and Y are i...

Question

X and Y are in partnership for supplying at to the government. Subsequently, it is found out that X is engaged with 2 in the supplying of meat to the same government. Can he retain the profits made out of the second engagement?

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Solution

Solution: Section to which the given problem relates Section 16(b).
Decision: No
Reason: Subject to contract between the partners, if a partner carries on competing business, he must account for and pay to the firm all profits made by him in that business.
[Leading case Loch v. Lynam]

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