Part 4Financial reporting, dissolution of partnership, and other miscellaneous provisions
End of partnership: Dissolving a partnership
78Rights where partnership dissolved for fraud or misrepresentation
If a partnership agreement is rescinded on the ground of the fraud or misrepresentation of one of the parties to the agreement, the party who is entitled to rescind (A) is entitled—
- to a lien on, or right of retention of, the surplus of the partnership assets (after satisfying the partnership liabilities) for—
- any sum of money paid by A for the purchase of a share in the partnership; and
- any capital contributed by A; and
- any sum of money paid by A for the purchase of a share in the partnership; and
- to stand in the place of the creditors of the firm for any payments made by A in respect of the partnership liabilities; and
- to be indemnified, by the person guilty of the fraud or of making the representation, against all the debts and liabilities of the firm.
The rights in subsection (1) are without prejudice to A’s other rights.
Compare
- 1908 No 139 s 44