Rights of P’s inter se
1. duties owed by P to other Ps
a. loyalty
i. accounting
ii. no self-dealing (dealing outside Pship interests)
iii. no competing w/ Pship
b. care – req’s gross negligence
i. ordinarily prudent person would exercise unde similar cirx (like bsns jj rule) [error in judgment not a breach]
ii. GF
iii. best interests of the Pship
iv. not as high as Trustee
2. equal profit sharing (default rule — can be altered)
1. divide profits (losses) equally (losses = 5k – 10k put in = -5k)
2. add contributions
- note – P’s are not entitled to compensation for their services, uoa
but if a P pays/advances/incurs liability on behalf of Pship, he gets repaid + interest
3. Partner voting
a. matter in ordinary course = majority in interest
b. outside ordinary course = unanimous [new partners & amending Pship agreement req's a unanimous vote of Ps]
4. majority in interest?
a. uoa, Ps profit share = and have an = vote
b. if not = profit share => > 50% interest [uoa]
5. partnership agreements can arise written, oral, even course of dealing
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