Hapgood v. Cornwell

Citations

• 48 Ill. 64

Syllabus

<p>!• Partnership—when one partner sells his entire interest to his co-partner—purchaser may use lite property to pay his individual debts. When one partner sells kis en*ire interest in the firm to his co-partner, the _ purchasing partner may appropriate the property to the payment of his individual debts, discharged of any claim or equity of the partnership creditors.</p> <p>2. Nor will it invalidate the transaction, that such purchase was made with the express intention of turning over the property to the creditor of the purchasing partner, in payment of an individual debt.</p> <p>3. The partners are the owners of the property', free from any lien of their creditors, which can only attach through the partners, and they' have a legal right, either by purchase or otherwise, to surrender partnership property in payment of the demand of an individual creditor.</p> <p>4. Former decision. These principles are fully recognized in the case of Ladd v. Griswold, 4 Gfilm. 36.</p> <p>6. Partnership—effect of agreement by purchasing partner that he will pay the firm debts. And in such case, a promise made by the purchasing partner that he will pay the firm debts, creates only a personal obligation, and not a lien on the partnership effects, which may still be used by him in payment of his individual debts, and when so applied, the individual creditor taking them without notice of any such promise, stands in the position of a purchaser for a valuable consideration, and holds the property, discharged of all lien on the part of the firm creditors.</p>