2006 Nebraska Revised Statutes - § 67-318 — Partners; rights; duties; rules for determining.

Section 67-318
Partners; rights; duties; rules for determining.

The rights and duties of the partners in relation to the partnership shall be determined, subject to any agreement between them, by the following rules:

(a) Each partner shall be repaid his or her contributions, whether by way of capital or advances to the partnership property, and shall share equally in the profits and surplus remaining after all liabilities, including those to partners, are satisfied. Except as provided in subsection (2) of section 67-315, each partner must contribute toward the losses, whether of capital or otherwise, sustained by the partnership according to his or her share in the profits;

(b) The partnership must indemnify every partner with respect to payments made and personal liabilities reasonably incurred by him or her in the ordinary and proper conduct of its business or for the preservation of its business or property;

(c) A partner, who in aid of the partnership makes any payment or advance beyond the amount of capital which he or she agreed to contribute, shall be paid interest from the date of the payment or advance;

(d) A partner shall receive interest on the capital contributed by him or her only from the date when repayment should be made;

(e) All partners have equal rights in the management and conduct of the partnership business;

(f) No partner is entitled to remuneration for acting in the partnership business, except that a surviving partner is entitled to reasonable compensation for his or her services in winding up the partnership affairs;

(g) No person can become a member of a partnership without the consent of all the partners; and

(h) Any difference arising as to ordinary matters connected with the partnership business may be decided by a majority of the partners, but no act in contravention of any agreement between the partners may be done rightfully without the consent of all the partners.

Source:

Laws 1943, c. 143, § 18, p. 492

R.S.1943, § 67-318

Laws 1996, LB 681, § 206

Termination date January 1, 2001

Annotations:

The provisions of subsection (a) of this section may be modified either by an agreement between the partners or by a course of dealing amounting to an agreement between the partners. Smith v. Daub, 219 Neb. 698, 365 N.W.2d 816 (1985).

A partner may not charge the partnership for his services unless there is an express agreement that he may. Barthuly v. Barthuly, 192 Neb. 610, 223 N.W.2d 429 (1974).

Advances by a partner beyond the amount of capital he agreed to contribute bear interest. Fleischer v. Broders, 178 Neb. 723, 135 N.W.2d 5 (1965).

One partner cannot by injunction deprive the other of rights in management of partnership business. Hauke v. Frey, 167 Neb. 398, 93 N.W.2d 183 (1958).

Services of partner constitute a part of costs recoverable in action on quantum meruit against third person. Gee v. City of Sutton, 149 Neb. 603, 31 N.W.2d 747 (1948).

~Reissue Revised Statutes of Nebraska