Partnership. {Ch. 31. No. 2.

 

or assets without any final settlement of accounts as between
the firm and the outgoing partner or his estate, then, in the
absence of any agreement to the contrary, the outgoing
partner or his estate is entitled at the option of himself
or his representatives to such share of the profits made
since the dissolution as the Court may find to be attributable
to the use of his share of the partnership assets or to interest
at the rate of six per centum per annum on the amount of
his share of the partnership assets.

(2) Provided that where, by the partnership contract,
an option is given to surviving or continuing partners to
purchase the interest of a deceased or outgoing partner,
and that option is duly exercised, the estate of the deceased
partner, or the outgoing partner or his estate, as the case
may be, is not entitled to any further or other share of
profits; but if any partner assuming to act in exercise of
the option does not in all material respects comply with the
terms thereof, he is liable to account under the foregoing
provisions of this section.

45. Subject to any agreement between the partners, the
amount due from surviving or continuing partners to an
outgoing partner or the representatives of a deceased partner
in respect of the outgoing or deceased partner's share is a
debt accruing at the date of the dissolution or death.

46. In settling accounts between the partners after a
dissolution of partnership, the following rules shall, subject
fo any agreement, be observed,

(a) losse., including losse. and deficiencies of capital,
shall be paid first out of profits, next out of capital, and
lastly, if necessary, by the partners individually in the
proportion in whic h the v were entitled to share profits;

(0) the assets of the firm, including the sums, 1fany,
contributed by the partners to make up losse. Or
deficiencies of capital, shall be applied in the following
manner and order:

(i) in paying the debts and Habilitics of the firm
{o persons who are not partners therein,

(ii) in paying to each partner rateably what is
due from the firm to him for advance. as distin-
guished from capital;

47 (2)

739

to share
profits made
after dis-
solution.

Kebining

deceased

partner's

share ta be
cledyt