209. Liability for losses.

c.     Payment of Losses and Application of Assets Realised

209.     Liability for losses.

In the absence of contrary agreement, losses, including losses and deficiencies of capital, must be paid first out of profits, next out of capital, and lastly, if necessary, by the partners individually in the proportions in which they would be entitled to share profits1.

Where partners agree to contribute capital in unequal shares but to divide the profits equally, and the assets prove insufficient to make good the capital, each partner is treated, unless otherwise provided, as liable to contribute an equal share