Adams v. Hubbard

Citations

• 221 Pa. 511
• 70 A. 835
• 1908 Pa. LEXIS 524

Syllabus

<p>Partnership — Dissolution—Accounting—Division of capital — Account stated.</p> <p>Where two partners dissolve their copartnership, and a statement of account prepared by one of them shows the amount of contribution to capital by each of them, and the agreement to dissolve shows that a liquidation of assets was contemplated, and that a possible shrinkage of assets was anticipated, one partner cannot assert as against the other that the statement of account was an account stated, and that the amount in his favor was fixed and could not be reduced by a subsequent shrinkage in the value of assets.</p> <p>Where a partnership is dissolved and its affairs are wound up, there must be a return of the firm capital to the partners contributing -it, in order that there may be a distribution of the profits. Each partner’s contribution is regarded as a firm debt to such partner, which must be repaid before there are any profits to be divided. Where one partner has advanced capital in excess of another, the amount advanced is a preferred claim upon the property of the firm. The distribution of capital upon dissolution is in the same proportion in which such capital was furnished.</p>