Priority of firm debts: firm property must satisfy joint liabilities first, then partners' shares address separate debts. Firm property must be applied first to pay debts of the firm; any surplus of firm property is applied to each partner's share for payment of his separate debts or paid to him. Separate property of a partner must first satisfy his separate debts, and any surplus of that separate property is to be applied to payment of the firm's debts.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Priority of firm debts: firm property must satisfy joint liabilities first, then partners' shares address separate debts.
Firm property must be applied first to pay debts of the firm; any surplus of firm property is applied to each partner's share for payment of his separate debts or paid to him. Separate property of a partner must first satisfy his separate debts, and any surplus of that separate property is to be applied to payment of the firm's debts.
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