Merrall v. Dobbins

Citations

• 169 Pa. 480
• 32 A. 578
• 1895 Pa. LEXIS 1118

Syllabus

<p>Partnership — Contract—Lease.</p> <p>By an agreement in writing, D. leased a hotel with all the personal property on the premises for three months to G. for twenty thousand dollars, payable in four equal installments. D. was not to be liable for the business done, or for the debts contracted by G. The agreement designated by the parties as a lease, further provided (1) that G. shall give his undivided attention and devote his best energies to the promotion of the business to be done on the said premises; (2) that D. or his representatives shall have the right of free access to the premises at all times; (8) that in addition to the sum of $20,000 D. shall have eighty per cent of the net profits derived from all of the business done on the premises; (4) that in addition to the current expenses of the hotel and the business done therein there shall be charged to the expense account the cost of insurance, water and sewer rents, license fee, interior repairs, and the' salary of a person to be designated by D. who shall keep the books and act as cashier, receive all money, deposit it in his own name, and make all payments; (5) that at the termination of the agreement a statement shall be made of the business done, and that G. shall receive twenty per cent of the net profits; (6) that at the expiration of the lease D. shall pay to G. $1,000, and that D. shall have the light at any time upon twenty-four hours’ notice to annul the agreement and assume sole and exclusive possession of the property; (7) that G. shall have absolute control and management of the business during the continuance of the agreement, and assent to a transfer of the license if the agreement shall be annulled. Held, that the agreement constituted a partnership between D. and G., as to third parties, and that D. was liable for debts contracted by G. in the conduct of the business.</p>