The following rules apply in a partnership in the absence of a contrary agreement:

1. Equal Sharing: All partners shall be entitled to share equally in the capital and profits of the firm and shall contribute equally towards the losses sustained by the firm.
2. Indemnification: The firm shall indemnify every partner in respect of payments made and personal liabilities incurred by them in the ordinary and proper conduct of the business of the firm or in or about anything necessarily done for the preservation of the business or property of the firm.
3. Interest on Advances: Any actual payment or advance beyond the amount of capital which a partner has agreed to subscribe shall be entitled to interest at the rate of five percent per annum from the date of payment or advance.
4. Participation in Management: Every partner may take part in the management of the business of the firm.
5. No Remuneration: No partner shall be entitled to remuneration for acting in the firm’s business.

(5 points at 1 mark each = 5 marks)