§ 7-12-29 - Rules determining rights and duties of partners.
SECTION 7-12-29
§ 7-12-29 Rules determining rights andduties of partners. – The rights and duties of the partners in relation to the partnership aredetermined, subject to any agreement between them, by the following rules:
(1) Each partner is repaid his or her contributions, whetherby way of capital or advances to the partnership property and shares equally inthe profits and surplus remaining after all liabilities, including those topartners, are satisfied; and except as provided in § 7-12-26(b), eachpartner must contribute toward the losses, whether of capital or otherwise,sustained by the partnership according to his or her share in the profits.
(2) The partnership must indemnify every partner in respectof payments made and personal liabilities reasonably incurred by him or her inthe ordinary and proper conduct of its business, or for the preservation of itsbusiness or property.
(3) A partner, who in aid of the partnership makes anypayment or advance beyond the amount of capital which he or she agreed tocontribute, is paid interest from the date of the payment or advance.
(4) A partner receives interest on the capital contributed byhim or her only from the date when repayment should be made.
(5) All partners have equal rights in the management andconduct of the partnership business.
(6) No partner is entitled to remuneration for acting in thepartnership business, except that a surviving partner is entitled to reasonablecompensation for his or her services in winding up the partnership affairs.
(7) No person can become a member of a partnership withoutthe consent of all the partners.
(8) Any difference arising as to ordinary matters connectedwith the partnership business may be decided by a majority of the partners; butno act in contravention of any agreement between the partners may be donerightfully without the consent of all the partners.