The Providence news. (Providence [R.I.]) 1891-1906, 1897-06-30

There are some nice legal distinctions
on this question OF profit sharing as evil
dence OF partnership which indicate that
the line has not yet been finally drawn by
the courts.
However, the intention has much TO do
with the fact, and the statement OF the
case which we have presented is as nearly
accurate as possible.
HOW A PARTNERsHIP Is FORMED.
period, or no definite time may bc agreed
upon, in which case it may DO dissolved
at will by either of the parties. Follow
ing is a memorandum of partnership
contract:
New York Dec /, 97.-John X. Wilson
and Edward r. Gray unite in partnership for
the purpose OF ine business on ., bs
average investment, and the gain or loss 10
be divided as follows John II. Wilson, 6-lO;
Edward X. Gray, 40
JOHN *. WILSON INVESTS.
Cash deposited in the First National Bank
5000; note of George W. Smith, favor of j.
G. Bryant, dated July l, at q months with
interest at per cent. from date, $500; John
ID. Rush's accented draft, drawn by W. Mel
sonal accounts, viz, William Jones, $40;
Lodowich Bray ton, $3.50; Nathaniel Wills
$500; cash, S2j9.5s.
EDWARD X GRAY INVESTS.
Cash, $780, fixtures. $1,000; stock Of ready
made clothing, 5000.
In order TO determine the exact invest
ment the notes put in by partner should
be reckonud MT their real vatue-that Is,
the principal and the accrued interest.
DISSOLUTION OF COPARTNERsHIP.
The copartnership heretofore existing be-
is this day dissolved by mutual consent, Mr..
Wilson retiring from the firm. The condi'
tions of the dissolution are that the retiring
shown by his account after being credited
with his share of the gain) one-half cash and
one-halt note, payable in six months, with
interest from date.
A statement OF the resources and liAbili-
ties of the copartnership should follow, in
order to arrive at the exact amount OF the
interest TO be purchased. The partners
should now be credited each with the in
terest on his average capital, and also his
share of the gain. The most simple and
direct form of obtaining this result is to
reckon interest on all sums invested from
the date of Investment TO the date OF set
tlement, from which deduct the interest
on all sums withdrawn from the date
OF withdrawal 10 that of settlement. The
difference will DO the interest on the
average investment
EXTRAORDINARY DISSOLUTION.
Sometimes the courts will intervene TO
dissolve partnership before the time
appointed. but this course is taken only
when some extraordinary occasion arises
toscall for an extraordinary remedy.
A dissolution will not be granted by
judicial tribunal merely because the
partners happen to differ in opinion.
Unless stipulation IL mace to the con-
trary n partnership Is dissolved by the
death Of ons of the partners.
1t Is also a rule that no now partners can
be introduced without the consent Of the
rest.
RESPONSIBILITY OF PARTNERS.
Each partner Is the agent of ali the rest
for business purposes, so far as third
parties are concerned, and he can bind
the firm by his act as to all matters with
in the scope of the partnership.
Notice should be- given, according to
law, of dissolution of or retirement from
partnership; otherwise the retiring part
ner might continue Co be liable To parties
dealing with the firm in ignorance of his
retirement.
A person may not be on actual partner;
but IL he Is ostensihly partner, and held
forth so TO the public. with his own con-
sent taoit or otherwise. he IL liable.
The Law will not permit the public to be
deceived, and traders led TO part with
their goods by the preteDse of a partnership
which does not exist as represented with
out holding to just responsibility the per-
sons who tolerate the misrepresentation.
WHEN 4 PARTNERSHIP ENDS.
The dissolution of a partnership ends all
transactions between the parties except
for taking an account and winding up the
business.
The powers of the partners still continue
for same purposes. such as To pay the
partnership debts out Of the partnership
funds Co carry out the engagements of
the partnership. and TO convert all part
nership assets for the benefit Of tho part
ners
The liability Of partners to third persons
continues until actual notice of the dis
solution of partnership Is served upon the
latter, IL they have had dealings with the
firm, but notice in the newspaper is sutfi-
cient as TO other parties.
CONTINUED next Wednesday