Question

Paolo, Quito, Reyes, and Sari form Toda el Mundo LP, a limited partnership to import and sell clothing made in remote global locales. In the absence of an agreement among the partners to the contrary, profits will be shared

Answer 1

A partnership agreement is a contract or an agreement between the partners in a partnership. It clearly specifies the rights and responsibilities of each partners in a firm.

In a partnership firm, the profits and losses are distributed or divided among its partners in accordance with provisions of their Partnership deed or agreement.

If there is no such agreement (whether oral or written) among the partners, the Law prescribes that the profits and losses should be shared equally by the partners.