Winstanley v. Gleyre

Citations

• 146 Ill. 27
• 34 N.E. 628

Syllabus

<p>1. Partnership—enterprise for platting and selling land of one of the parties. The owner of a two hundred acre tract of land near a city entered into a written agreement with four other persons, part of whom were real estate brokers, whereby the latter, at their own expense, were to lay out and plat the land into lots and blocks, advertise and sell the same, and pay the first party the sum of $50,000, after which the balance derived from the sale of the remaining lots was to be divided equally between the parties, each taking a fifth: Held, that by the contract the parties created a partnership in the enterprise of subdividing, platting, advertising and selling the two hundred acres of land, the contract giving to each a community of interest in the profits of the enterprise.</p> <p>2. In such case, after the payment to the party furnishing the land, of the $50,000 provided for by the contract, the residue of the land unsold became, in equity, partnership assets, and the court, on bill filed by one of the partners, had the power to order it sold and the proceeds distributed, and also to set aside deeds made by the partner holding the legal title, in fraud of the rights of other partners.</p> <p>3. Same—partner dealing in partnership property, for his own benefit. A partner is, by virtue of the partnership relation, incapacitated to purchase or deal in the partnership property for his own benefit, and his purchase will be held to be in trust for the benefit of the co-partnership.</p>