Meyer, Knapp, and Cavanna establish a partnership to operate a window washing service Meyer contributes $10,000 to the partnership, and Knapp and Cavanna contribute $1,000 each The partnership agreement is silent as to how profits and losses will be shared One month after the partnership begins ope...

This problem points to the necessity of having a written partnership agreement specifically stating ...

Meyer, Knapp, and Cavanna establish a partnership to operate a window-washing service. Meyer contributes $10,000 to the

Question:

Meyer, Knapp, and Cavanna establish a to operate a window-washing service. Meyer contributes $10,000 to the and Knapp and Cavanna contribute $1,000 each. The agreement is silent as to how profits and losses will be shared. One month after the begins operation, Knapp and Cavanna vote, over Meyer’s objection, to purchase another truck for the firm. Meyer believes that because he contributed $10,000, the cannot make any major commitment to purchase over his objection. In addition, Meyer claims that in the absence of any provision in the agreement, profits must be divided in the same ratio as capital contributions. Discuss Meyer’s contentions.

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...