Assignment Task: 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 neighborhood. 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?