Bank of Montreal v. Page

Citations

• 98 Ill. 109
• 1881 Ill. LEXIS 231

Syllabus

<p>1. Partnership—of its duration and dissolution. If a partnership is formed for a single purpose or transaction, it ceases as soon as the business completed, or whenever there is dm end put to the business; and although a partnership is entered into for one year, it may be terminated by mutual consent at any time the partners may choose.</p> <p>2. When partners by resolution determine to cease doing business and wind up the same, and appoint one of their number, or a third party, to take charge of the property and accounts, and to dispose of the property and collect their accounts, this will amount to a dissolution of the partnership and a revocation of the powers of any other agent before that time acting for the firm.</p> <p>3. Same—powers of partners after dissolution. In the absence of stipulation to the contrary, in case of dissolution, every partner is left in the possession of the full power to pay debts, and collect debts due the firm, to apply the partnership funds and effects to the discharge of their own debts, to adjust and settle the unliquidated debts of the partnership, to receive any property belonging 'to the partnership, and to make due acquittances, discharges, receipts and acknowledgments of their acts in the premises.</p> <p>4. While the dissolution does not revoke the authority to liquidate, settle and pay debts already created, it operates as a revocation of all authority for making new contracts, and since the giving of a promissory note or the acceptance of a bill or draft is the making of a new contract, although it may be for a prior debt, a partner after dissolution can not 'thus bind the firm or authorize another to do so.</p> <p>5. To hold the members of a partnership liable for commercial paper executed or accepted by direction of one member after the dissolution, on the ground that the person taking and discounting such paper in the late firm name and style had no knowledge of the dissolution, itmustbe shown that the members constit