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 ... Summary
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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