A partnership between the parties had held a contract for the exclusive supply of a foreign company’s goods in Ceylon. One of the partners cancelled the partnership’s contract and took a new contract in his name alone. This contract was said to be personal to that partner.
Held: The Privy Council advised that this new contract was to be treated as partnership property, since it arose out of the substantial goodwill which the partnership had generated.
After termination, one partner carries on the partnership business using the capital of the other, that partner is liable to account to the partnership.
Judges:
Guest, Pearce, Upjohn, Pearson LL, Sir Frederic Sellers
Citations:
[1967] 1 AC 233, [1966] 3 WLR 666, [1966] UKPC 14
Links:
Commonwealth, Company, Trusts
Updated: 20 September 2022; Ref: scu.445099
