178.34 Adjustment of rights on dissolution for fraud. - Wisconsin Statutes

178.34

178.34 Adjustment of rights on dissolution for fraud. If a partnership contract is rescinded on the ground of the fraud or misrepresentation of one of the parties thereto, the party entitled to rescind is, without prejudice to any other right, entitled to all of the following:

178.34(1)

(1) A lien on, or right of retention of, the surplus of the partnership property after satisfying the partnership liabilities to 3rd persons for any sum of money paid by the party entitled to rescind for the purchase of an interest in the partnership and for any capital or advances contributed by the party entitled to rescind.

178.34(2)

(2) To stand, after all liabilities to 3rd persons have been satisfied, in the place of the creditors of the partnership for any payments made by the party entitled to rescind in respect of the partnership liabilities.

178.34(3)

(3) Indemnification by the person guilty of the fraud or making the representation against all debts and liabilities of the partnership.

178.34 - ANNOT.

History: 1993 a. 482; 2005 a. 253.