Also known as:earnings from service · service earnings · compensation for services
Written by attorneys · grounded in primary & secondary sources — see below
An amount paid to a partner or personal representative for labor or services actually rendered, subject to the rule that a partner receives no separate remuneration unless the agreement so provides and a personal representative may renounce a will provision and still claim reasonable statutory compensation.
Sources & Authorities
How it applies
Common Examples
2
Partner Seeks Service Fee
Ella Emerson and Esther Eisenberg formed a partnership to operate a consulting firm. Ella performed extensive client work for six months but later demanded a separate monthly fee for those services. The partnership agreement provided only for profit sharing and contained no provision authorizing additional compensation. Ella cannot recover the claimed fee because partners receive no remuneration for services rendered in carrying on the partnership business.
Executor Claims Statutory Fee
Eduardo Enriquez was appointed personal representative of his aunt's estate. The will named a fixed fee but Eduardo filed a written renunciation before qualifying. He then petitioned the court for reasonable compensation based on the hours he devoted to administering the estate. The court may award reasonable compensation because the statute permits a personal representative to renounce a will provision and still receive payment for services actually rendered.
Put it into practice
Test Yourself
10
Practice Questions5
· 5 primary sources
Select any source to read its text and confirm it supports the definition.
Statutes
Uniform Acts
Restatements
Study Supplements
Common questions
Frequently Asked
3
When may a partner or personal representative receive compensation for services beyond profit share or will provisions?+
A partner receives no separate pay for services unless the agreement expressly authorizes it. A personal representative may renounce a will's compensation clause before qualifying and still receive reasonable compensation for services actually rendered under the statute.
Supporting sources
Does a general partner receive separate pay for management services when the agreement is silent?+
No. A general partner is not entitled to remuneration for services performed for the partnership unless the partnership agreement expressly provides for it or the services occur during winding up. The partner is compensated only through the agreed share of profits.
May a personal representative renounce a will's compensation clause and still receive payment?+
Yes. The statute allows the personal representative to renounce the will provision before qualifying and then claim reasonable compensation for services actually rendered. A written renunciation may be filed with the court.
Business Associations Agency and PartnershipCreation of partnerships · General partnershipsUBEIntermediate