FORM OF ORGANIZATION 13 



property which remains after all firm indebtedness has been 

 paid. 



Liabilities of Individual Partners. — The liabilities of part- 

 ners to each other are regulated by written agreement; in its 

 absence, the law assumes that partners share alike in profits 

 and losses. If a partner withdraws before his partnership con- 

 tract expires, he is Uable to the remaining member or members 

 of the firm for damages due to his withdrawal. 



The partners are individually responsible to a third party 

 for indebtedness contracted by the copartnership. 



But creditors of each partner as an individual, if any, must 

 first be satisfied before that partner's personal property can 

 be attached for his partnership liabilities. 



A new partner is not responsible for debts contracted before 

 he was admitted as a partner. 



Dissolution of Partnership. — A partnership is dissolved by 



1. Expiration of predetermined time. 



2. Mutual agreement. 



3. Death of a partner. 



4. Change of membership. 



5. Bankruptcy of a member or of the partnership itself. 



6. Court action, as in case of dishonesty, habitual drunken- 

 ness, etc. 



No partner can sell out his interest in a copartnership and 

 in that way avoid liabiUty for debts contracted. 



When a copartnership is dissolved, a notice thereof should 

 be sent in writing to all firms or individuals with whom the 

 company is dealing or with whom it had former dealings. 

 Such annoimcements should also be made through the news- 

 papers. 



If a partnership is dissolved by the death of one member, 

 the surviving members settle the partnership accounts, but they 

 are not authorized to carry on the business for other pur- 

 poses. When the affairs of the partnership have been settled 

 and when the amount belonging to the deceased has been paid 

 to his rightful heirs, the surviving partners may then resume 

 business. 



