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4 court appointed receiver survivors right and duty

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4.) Court-appointed receiver.Survivor’s right and duty to liquidateWhen a member of a partnership dies, the duty ofliquidating its afairs devolves upon the survivingmember(s) of the firm, not upon the legal representativeof the deceased partner. The latter has no right tointerfere so long as the surviving partner proceeds ingood faith.Powers of liquidating partner1.) Make new contracts – For the purpose ofwinding up the partnership, a liquidating partneris sole agent of the partnership, but merely forthat one specific purpose. He cannot make newcontracts w/o express authority.2.) Raise money to pay partnership debts – Forthe purpose of winding up the concern, however,the liquidating partner may bind the partnershipby borrowing money to meet its accruingliabilities, and may sell its real estate to raisemoney to pay its debts.3.) Incur obligations to complete existingcontracts or preserve partnership assets – Aliquidating partner has power to incur obligationsnecessary to the completion of existing contracts,and to incur debts or other obligations necessaryfor the reasonable preservation of partnershipassets or in procuring a favorable market fortheir disposal.4.) Incur expenses necessary in the conduct oflitigation – He has power to employ an attorneywhen necessary for winding up of afairs.Art. 1837. When dissolution is caused in anyway, except in contravention of the partnershipagreement, each partner, as against his co-partners and all persons claiming through theminrespect of their interests in the partnership,unlessotherwiseagreed,may havethepartnership property applied to discharge itsliabilities, and the surplus applied to pay in cashthe net amount owing to the respective partners.But if dissolution is caused by expulsion of apartner, bona fideunder thepartnership agreement and if theexpelledpartnerisdischargedfromallpartnershipliabilities, either by payment or agreement underthe second paragraph of Article 1835, he shallreceive in cash only the net amount due himfromthe partnership.When dissolution is caused in contraventionof the partnership agreement the rights of thepartners shall be as follows:1.)Each partner who has not causeddissolution wrongfully shall have:a.) All the rights specified in thefirst paragraph of this article,andb.) The right, as against each partnerwho has caused the dissolutionwrongfully, to damages for breach ofthe agreement.2.)The partners who have not caused thedissolution wrongfully, if they all desire tocontinue the business in the same nameeither by themselves or jointly withothers, may do so, during the agreedterm for the partnership and for thatpurpose may possess the partnershipproperty, provided they secure thepayment bybond approved by the court, or pay toany partner who has caused thedissolution wrongfully, the value of hisinterest in thepartnership at the dissolution, loss anydamages recoverable under the secondparagraph, No. 1 (b) of this article, and in

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Term
Fall
Professor
NoProfessor
Tags
Managing Partner, universal partnership, Civil Partnerships

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