A partnership contract between A and B, two dentists, provided that if either should ‘be guilty of professional misconduct or any act which is calculated to bring discredit upon or injure the other partner or the partnership business,’ the other should have the right to terminate the partnership. A joined with other persons in forming, and became a director and shareholder in, a company called the American Dental Institute, Limited. This company issued large numbers of advertisements, in which they praised their own work and products in the most extravagant terms, and at the same time decried those of rival practitioners in general, against whom they also made charges of moral misconduct.
Held that A’s conduct was such as to entitle B to terminate the partnership under the clause above narrated.
Judges:
Lord Chancellor (Loreburn), The Earl of Halsbury, Lords Macnaghten and Atkinson
Citations:
[1907] UKHL 966, 45 SLR 966
Links:
Jurisdiction:
England and Wales
Company
Updated: 27 April 2022; Ref: scu.622314