§ 7-12-50 - Rights where partnership is dissolved for fraud or misrepresentation.
SECTION 7-12-50
§ 7-12-50 Rights where partnership isdissolved for fraud or misrepresentation. – Where a partnership contract is rescinded on the ground of the fraud ormisrepresentation of one of the parties to the contract, the party entitled torescind is, without prejudice to any other right, entitled to:
(1) A lien on, or right of retention of, the surplus of thepartnership property, after satisfying the partnership liabilities to thirdpersons, for any sum of money paid by him or her for the purchase of aninterest in the partnership and for any capital or advances contributed by him;and
(2) Stand, after all liabilities to third persons have beensatisfied, in the place of the creditors of the partnership for any paymentsmade by him or her as to the partnership liabilities; and
(3) Indemnification by the person guilty of the fraud ormaking the representation against all debts and liabilities of the partnership.