Acts and Regulations

P-4 - Partnership Act

Section 4
Disposition versions

Full text
Effect of bankruptcy or insolvency
4Where a person to whom money has been advanced by way of loan upon a contract such as is mentioned in section 3, or a buyer of good will in consideration of a share of the profits of the business
(a) is adjudged a bankrupt, and enters into an arrangement to pay his creditors less than one hundred cents in the dollar, or
(b) dies in insolvent circumstances,
the lender of the money is not entitled to recover anything in respect of his loan, and the settler of the good will is not entitled to recover anything in respect of the share of profits contracted for, until the claims of the other creditors of the borrower or buyer for valuable consideration in money or money’s worth have been satisfied.
R.S., c.167, s.4