| Commentary

71.1 General

| Commentary

71 Profit sharing

71.1 General

Whilst it is essential that all the partners are entitled to share in residual profits, it is perfectly acceptable for them to reach agreement for prior charges on those profits—but on the understanding that neither residual profits nor prior charges on those profits can be paid except to the extent that there are profits. It is particularly important to ensure that all the partners understand the insecure status of their return from the enterprise.

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