Question
Three old school friends, A, B and C (all of them males), form a partnership to carry on a painting business. Their partnership agreement contains,
Three old school friends, A, B and C (all of them males), form a partnership to carry on a painting business. Their partnership agreement contains, inter alia, the following provisions.
the partners shall be A, B and C the business of the firm shall be painting all forms of houses, buildings and similar structures the firm shall trade under the name Nadi Painters each partner is to make a capital contribution of $5,000 each partner is to devote himself to the business full-time partners share equally in profits and losses of the firm each partner shall have full authority to act on behalf of the firm
By agreement the partners work only from Monday to Friday. Throughout March, April and May, C spends every Sunday doing small painting jobs for people in his neighbourhood. He uses his own equipment and paint. A and B spend their Sundays at church and with their families. C does not tell A and B about the small painting jobs he does on Sundays and keeps for himself all fees earned.
A and B come to learn about C's Sunday activities. They feel unhappy. They feel that C has somehow been cheating the firm with his painting work on Sundays. C feels otherwise. He maintains he hasn't cheated anyone since he did all the work on Sundays and did it in his own time. As a matter of law, should A and B share in the profits of C's Sunday work?
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