Victorian Consolidated Legislation

Partnership Act 1958 - SECT 45

Rights where partnership dissolved for fraud or misrepresentation

45. Rights where partnership dissolved for fraud or misrepresentation

Where a partnership contract is rescinded on the ground of the fraud or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-

   (a)  to a lien on or right of retention of the surplus of the partnership
        assets after satisfying the partnership liabilities for any sum of
        money paid by him for the purchase of a share in the partnership and
        for any capital contributed by him;

   (b)  to stand in the place of the creditors of the firm for any payments
        made by him in respect of the partnership liabilities; and

   (c)  to be indemnified by the person guilty of the fraud or making the
        representation against all the debts and liabilities of the firm.