Question

Arya and Meera are partners. They do not have any partnership agreement. What should be done in the following cases?

a) Arya wants to introduce her son Hari into the business. Meera objects to it.

b) Meera wants that profits should be distributed in the ratio of capitals but Arya wants that it should be distributed equally. Give reasons for your answer.

Answer 1

a) Hari will not be admitted as a partner. According to the Indian partnership Act, a new partner can be admitted into the firm only with the consent of all the existing partners unless otherwise agreed upon. 

b) Profit will be distributed equally. 

Reason:- In the absence of any written agreement between partners, the profits and losses will be shared equally.