In a partnership, how are profits and liabilities generally shared among partners in the absence of an agreement?

In a partnership, when there is no specific agreement outlining the distribution of profits and liabilities, the default legal rule is that they are shared equally among all partners. This principle is grounded in the idea that partnerships are based on mutual cooperation and equal status among partners, regardless of differing capital contributions or levels of effort.

This equal sharing reinforces the notion of partnership as a collective enterprise where each partner has a stake in both the profits generated and the liabilities incurred. If partners were allowed to share profits and liabilities based on capital contributions or seniority, it could create an imbalance and conflict among partners, undermining the collaborative nature that partnerships are designed to embody.

In most jurisdictions, including New Brunswick, the lack of an explicit agreement defaults to this equal sharing principle, ensuring that all partners are treated fairly and equitably.