Forsyth v. Woods

Citations

• 78 U.S. 484
• 20 L. Ed. 207
• 11 Wall. 484
• 1870 U.S. LEXIS 1497

Syllabus

<p>1. Semble, that a debt incurred by the members of a partnership individually, even in a matter where the firm is to profit, will not, in case of bankruptcy of the firm, let the person to whom the debt was incurred come for a dividend upon the assets of the firm as distinguished from the assets of the individual partners.</p> <p>2. The acceptance of letters of administration being a trust — (granted because of the confidence reposed in the grantee) — a loss sustained by a surety in the administration bond, who has entered into the suretyship under a representation from a firm of which the administrator was a member, that they intended to take into the possession of the partnership all the assets of the intestate, to make the administration a matter of partnership business, and to share as partners the gains and losses resulting from the administration, so that in signing the bond he would become the surety of the firm and not of the individual partner, cannot be recovered by the surety from the firm. Such a transaction is against the policy of the law.</p>