§ 70 — Rights where partnership is dissolved for fraud, or misrepresentation

New York § 70

• Jurisdiction: New York
• Law PTR: Partnership
• Art. 6: Dissolution and Winding Up

Text

§ 70. Rights where partnership is dissolved for fraud, or\nmisrepresentation. Where a partnership contract is rescinded on the\nground of the fraud or misrepresentation of one of the parties thereto,\nthe party entitled to rescind is, without prejudice to any other right,\nentitled,\n (a) To a lien on, or right of retention of, the surplus of the\npartnership property after satisfying the partnership liabilities to\nthird persons for any sum of money paid by him for the purchase of an\ninterest in the partnership and for any capital or advances contributed\nby him; and\n (b) To stand, after all liabilities to third persons have been\nsatisfied, in the place of the creditors of the partnership for any\npayments made by him in respect of the partnership liabilities; and\n (c) To be indemnified by the person guilty of the fraud or making the\nrepresentation against all debts and liabilities of the partnership.\n