In a partnership with multiple contributors where T, I, U, and M support a proposal and R, P, H oppose, which group prevails?

• A. The group of R, P, and H will prevail because they constitute the controlling interest.
• B. None will prevail because no one is appointed as manager of the partnership.
• C. The group of T, I, U, and M will prevail because they constitute the majority.
• D. The partners will have to appoint a manager in order to resolve the conflict.

Answer: (C)

Majority rule governs how a partnership decides ordinary matters. When more partners support a proposal than oppose it, the supporting group prevails, unless the partnership agreement requires unanimous consent or a higher voting threshold for that type of decision. Here, four partners support the proposal and three oppose, so the supporters form the majority and their proposal passes. If the agreement imposed unanimity or a different threshold, the result could differ, but with standard majority voting, the larger side wins.