Meyer, Nap, and Cavanna establish a partnership to operate a window washing service. Meyer contributes $10,000 to the partnership, and Nap and Cavanna contribute $1000 each. The partnership agreement is silent as to how profits and losses will be shared. One month after the partnership begins operation, Nap and Cavanna vote, over Meyer's objection, to purchase another truck for the firm. Meyer believes that because he contributed $10,000, the partnership cannot make any major commitment to purchase over his objection. In addition, Meyer claims that in absence of any provision in the agreement, profits must be divided in the same ratio as capital contributions. Fully discuss Meyer's contentions.© BrainMass Inc. brainmass.com June 3, 2020, 10:10 pm ad1c9bdddf
Meyer's contentions are incorrect. In a general partnership, all the partners have equal say in management decisions. Uniform Partnership Act (UPA) states that all the partners irrespective ...
The solution answers the question below and goes into quite a bit of detail regarding the UPA. The answer is ideal for students looking for a detailed analysis of the question asked below. An excellent response to the question being asked.