48Right of outgoing partner in certain cases to share profits

48 Right of outgoing partner in certain cases to share profits made after dissolution (1) Subject to subsection (2), where— (a) a member of a firm has died or otherwise ceased to be a partner in the firm; and (b) the surviving or continuing partners carry on the business of the firm with its capital or assets without any final settlement of accounts as between the firm and the outgoing partner or their estate; the outgoing partner or their estate is, in the absence of an agreement to the contrary, entitled, at the option of that partner or their legal personal representatives— (c) to such share of the profits made since the dissolution as the Supreme Court finds to be attributable to the use of that partner’s share of the partnership property; or (d) to interest at the rate of 7% per annum on the amount of that partner’s share of the partnership property. (2) Where, by the partnership agreement, an option is given to the surviving or continuing partners in a firm to purchase the interest of a deceased or outgoing partner and that option is duly exercised, the estate of the deceased partner or the outgoing partner or the estate of the outgoing partner, as the case may be, is not entitled to any further or other share of the profits of the firm, but, if a partner in the firm assuming to act in exercise of the option does not in all material respects comply with the terms of the option, that partner is liable to account under subsection (1).