358.390. Rights where partnership is dissolved for fraud or misrepresentation. - Missouri Statutes

Rights where partnership is dissolved for fraud or misrepresentation.

358.390. Where a partnership contract is rescinded on theground of the fraud or misrepresentation of one of the partiesthereto, the party entitled to rescind is, without prejudice toany other right, entitled,

(1) To a lien on, or right of retention of, the surplus ofthe partnership property after satisfying the partnershipliabilities to third persons for any sum of money paid by him forthe purchase of an interest in the partnership and for anycapital or advances contributed by him; and

(2) To stand, after all liabilities to third persons havebeen satisfied, in the place of the creditors of the partnershipfor any payments made by him in respect of the partnershipliabilities; and

(3) To be indemnified by the person guilty of the fraud ormaking the representation against all debts and liabilities ofthe partnership.

(L. 1949 p. 506 § 39)