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Buachaill, Barrister
Category: Law
Satisfied Customers: 10944
Experience:  Barrister 17 years experience
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Regarding Article 41 0f the law of partnership where a partner

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Regarding Article 41 0f the law of partnership where a partner commits fraud or in this case also misleads the court by false testimony in a legal case. The partnership is dissolved as it cannot continue. Is the partner who commits the fraud and misrepresentation as indicated in Article 41 responsible for all debts and liabilities of the partnership.
1. Your reading of section 41 of the Partnership Act, 1890, is correct, in that the partner who is guilty of fraud has an obligation to discharge all the debts and liabilities of the partnership. The essential idea here is that the person who has been subjected to the fraud should not bear any liability for any debts or liabilities arising from the business of the partnership. They in effect should be clear of any liability arising from the business. The key point here is that the innocent partner is not just given a relief from the fraud but from all debts of the business engaged in by the partnership. So even though, the fraud may only have affected one part of the business, all debts and liabilities of the business should fall upon the defrauding partner. So the protection for the innocent partner is much wider that one would think at first glance.
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Customer: replied 2 years ago.

Thank you for your assistance very much obliged, in the event of a legal challenge, can you advise the way forward, taking into accoyunt you are resident in England

Thanks Billy Johnston

2. Be aware that in the event of a legal challenge, a court will take a very dim view of the defrauding partner. This is as much true in Northern Ireland as in England. The view of all High court judges is that parties engaging in fraud will be penalised for it. This is not only to do justice in the case but to also serve as a marker to others. Be aware than the indemnity which the defrauding partner is obliged to provide for the debts and liabilities of the business can be sued upon summarily. So I suggest that once the firm has been wound up that the indemnity be sued upon if there are outstanding debts which the defrauding partner has not discharged.
Customer: replied 2 years ago.

The reply does not include the query about false testimony to the court, would this come under misrepresentation or is this included in the charge of fraud.

Thanks Billy Johnston

3. Dear Billy, false testimony in court amounts to perjury. This can be prosecuted by the Public Prosecution Service in Northern Ireland. You can make a complaint to the police service of Northern Ireland about it. A perjury conviction is evidence of fraud and would be treated as such.
Customer: replied 2 years ago.

Many thanks excellent service

4. You are welcome, Billy.