Question

X, Y and Z are partners l~, .a tradea Z without the knowledge of X and Y, obtains for his wn sole,. Benefit of a lease. The house in which the partnership business is .carried on. a .X and Y entitled to participate in .the benefit of the lease?

Answer 1

Solution: Section to which the given problem relates Section l6 (a).
Decision Yes
Reason: Subject to contract between the partners, where a partner derives any profit for himself from the use of the properly of the firm, he must account for the profit and pay it the firm.
[Leading case: Featherstonhaugh v. Fenwick]