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Good morning....This is a little more complex than whether or not interest should be paid. The oral agreement was that all three partners would contribute equally. This obviously did not happen. If it had happened, then the question of interest would be moot since everyone would be equal. Since there were unequal contributions, the partners who contributed more than their 1/3 share actually have a claim against the partner or partners who contributed less than their 1/3 share in amounts that would cause them to have given equally. Should they bring this claim, interest would most likely be awarded on the judgment. As a result, even though your oral agreement does not mention interest, the partners not contributing their share would be well advised to pay interest to avoid a lawsuit resulting in them paying both interest and the deficit amount of their contribution.
I hope this has given you the guidance you were seeking. I wish you the best of luck!
The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.
Interest is normally paid before principal. The partner who paid the smallest amount has got himself in a bit of a pickle. One, he breached the agreement because he did not contribute his fair 1/3 share. Two, he breached his fiduciary duty to the partnership and the other partners by giving himself preferential distributions. The other partners have a couple very valid lawsuits against this partner for those breaches. He is in no position to be dictating what happens here.
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