Rescission for fraud grants a partner lien on firm surplus, creditor ranking for payments, and indemnity rights. Rescission for fraud or misrepresentation gives the rescinding partner a lien on or right of retention over the surplus of firm assets after debts, to cover sums paid for acquisition of a share and contributed capital; the rescinding partner ranks as a creditor for payments made towards firm debts; and the rescinding partner is entitled to indemnity from the partner(s) guilty of the fraud or misrepresentation against all 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.
Rescission for fraud grants a partner lien on firm surplus, creditor ranking for payments, and indemnity rights.
Rescission for fraud or misrepresentation gives the rescinding partner a lien on or right of retention over the surplus of firm assets after debts, to cover sums paid for acquisition of a share and contributed capital; the rescinding partner ranks as a creditor for payments made towards firm debts; and the rescinding partner is entitled to indemnity from the partner(s) guilty of the fraud or misrepresentation against all the firm's debts.
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