§ 59-69. Rights where partnership is dissolved for fraud or misrepresentation. - North Carolina Statutes

§59‑69.  Rights where partnership is dissolved for fraud ormisrepresentation.

Where partnership contract isrescinded on the ground of the fraud or misrepresentation of one of the partiesthereto, the party entitled to rescind is, without prejudice to any otherright, entitled,

(1)        To a lien on, orright of retention of, the surplus of the partnership property after satisfyingthe partnership liabilities to third persons for any sum of money by him forthe purchase of an interest in the partnership and for any capital or advancescontributed by him; and

(2)        To stand, after allliabilities to third persons have been satisfied, in the place of the creditorsof the partnership for any payments made by him in respect of the partnershipliabilities; and

(3)        To be indemnified bythe person guilty of the fraud or making the representation against all debtsand liabilities of the partnership. (1941, c. 374, s. 39.)