Case ID: shan-cas_1/html/0093-01.html
Source: Caselaw Access Project
Author: {"author": "McKinney, J.,", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

ALEXANDER BELL v. JOHN S. DIVINE.
    (S. C., Thomp. Cas., 151-152.)
    Knoxville,
    September Term, 1858.
    PARTNERSHIP. Participation in profits or losses, rules for.
    Where a partnership business is conducted in the manner contemplated by the partnership agreement, the rights and liabilities of the several partners must-be governed by the terms of the agreement; but if any business other than that contemplated by the partnership agreement is done, or if the contemplated business is done in a manner different from that contemplated, then the ordinary rule of equal • participation in the profits or losses must govern. [How partnership assets shall be appropriated or divided upon termination or dissolution of the partnership. Shepherd, ex parte, 3 Term Chy., 189; Knight v. Ogden, 2 Tenn. Chy., 476.]
   McKinney, J.,

delivered the opinion of the court:

The principle of the account is in one respect erroneous. So far as the business of the concern was conducted in the manner contemplated by the partnership agreement, the rights and liabilities of the several partners must be governed by the terms of the agreement.

Bnt so far as any business may have been carried on by the firm, aside from and in manner different from that contemplated by the articles of partnership, a different rule must prevail, and the rights and liabilities of the respective partners must, as to the latter business, be governed by the ordinary rule of equality in the profits and losses of the business. In this view the account must be recast, and in doing so the master will discriminate between the different transactions of the firm and restate an account in view of the distinction in principle above stated.