Harris v. Zier

Citations

• 43 Wash. 573
• 86 P. 928
• 1906 Wash. LEXIS 749

Syllabus

<p>Partnership — Dissolution— Authority of Partners— Termination. After a partnership has ceased to do business and all its assets are in the hands of a receiver or held under attachment, the firm is dissolved so that one partner could not bind the other by acts constituting a fraud on creditors or render such other liable therefor, he having no knowledge thereof.</p> <p>Composition With Creditors — Partnership—Assignment—Fraud —Sale of Accounts. Where all the partnership assets are in the hands of a receiver or held under attachment, and a third person is induced by one of the partners to buy out the interest of the other partner for $4,500, and to purchase all the claims of creditors at eighty-five cents on the dollar, taking assignments thereof, and entering the firm, the transaction does not constitute a composition with creditors, but is a sale of the accounts; and the same is not vitiated by the fact that one of the partners secretly paid the balance due to one of the creditors, in order to induce it to sell its claim at the aforesaid discount, where there is nothing to show that any of the creditors agreed to sell their claims only on condition that all creditors sold at the same rate, and where the purchaser had no notice of such payment.</p>