728

Postpone
ment of
rights ot
person
lending on
selling in
considera

tion of share

of profits in
case of
hbankruptes

Meaning ol
“frm.”

Power of

artner to
Pind the
firm.

Partners
bound by
acts on
behalf of
firm,

Ch. 31. No. 2.) Partnership.

in consideration of the sale by him of the goodwill
of the business, is not, by reason only of such
receipt a partner in the business or liable as such.

5. In the event of any person to Whom money has been
advanced by wav of loan upon such a contract as is men-
tioned in the last preceding section, or of any buyer of
goodwill in consideration of a share of the profits of the
business, being adjudged bankrupt, entering mto an
arrangement to pay his creditors less than one hundred
cents in the dollar, or dying in insolvent circumstances, the
lender of the loan shall not be entitled to recover anything
in respect of his loan, and the seller of the goodwill shall not
be entitled to recover anything in respect of the share of
profits contracted for, until the claims of the other creditors
of the borrower or buyer for valuable consideration in
money or money's worth have been satisfied,

6. Persons who have entered into partnership with one
another are, for the purpose. of this Ordinance, called
collectively a firm, and the name under which their
business is carried on is called the firm-name.

Relations of partners to persons dealing wrth them.
&

7. every partner is an agent of the firm and his other
partners for the purpose of the business of the partnership;
and the acts of every partner who does any act for carrying
on in the usual way business of the kind carried on by the
firm of which he is a member, bind the firm and his partners,
unless the partner so acting bas in fact no authority to act
for the firm in the particular matter, and the person with
whom he is dealing either knows that he has no authority,
or docs not knew or believe him to be a partner.

8. An act or instrument relating to the business of the
firm, and done or executed in the firm-name, or in any
other manner showing an intention to bind the firm, by any
person thereto authorised, whether a partner or not, is
binding on the firm and all the partners: Provided that
this section shall not affect any general rule of law reJating
to the execution of deeds or negotiable instruments.