Profit earned by Partners

Sociology | Mercantile Law | International Law | International Relations

Checks as to Profits earned by Partners
Personal Profit Earned by Partners from Partnership Property
If a partner derives any profit for himself from the use of the property or business connection of the firm or the firm name he shall account for that profit and pay it to the firm.

Profit Earned by Partner from Business Competing to the Firm
If a partner carries on any business of the same nature as and competing with that of the firm, he shall account for and pay to the firm all profits made by him in that business.

Case Reference: Loch v. Lynam (1854)
A & B partners were running a business of supplying meat to the government. Subsequently, it was found out that, A was also engaged with C in supplying meat to the same government. Thus, in lieu of having started a business competing to the firm of which A was a part, he was ordered to account the firm for the profits made by him.