Freeman v. Badgley

Citations

• 105 Cal. 372
• 38 P. 955
• 1895 Cal. LEXIS 667

Syllabus

<p>Partnership—Assumption of Debts of Old Firm.—Where a new partner is taken into an old firm it may be shown by circumstances that the new firm assumed the former liabilities. But proof that the new firm recognized the debts of the old firm as its debts does not tend to prbve an assumption of the old debts subsequently to the formation of the new copartnership, hut that at the time of the formation of the last copartnership the new firm assumed the old debts, and that the liability of the new partner for them was a part of the consideration paid by him for his interest in the partnership.</p> <p>Id.—Statute of Fbauds.—An agreement, made after the new partnership was formed, whereby the new partner agrees to assume the debts of the old firm, is an agreement to pay the debt of another, and must be established in compliance with the statute of frauds.</p>