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Necessity of Notice of Dis Solution

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NECESSITY OF NOTICE OF DIS SOLUTION. The proper method of exercising the right to dissolve a partnership by the act of one or all of the partners is, by notice to that effect, to the other partners, to creditors of the firm and to third persons. When a partnership is dissolved by operation of law, as by death of a partner, notice is unnecessary, but in all other cases, including dissolution by judicial decree, notice in some form is required.

The general rule is that actual notice of dissolution must be given to former creditors of the firm, and no tice by publication to other persons. To persons who have dealt with the firm a notice is insufficient which has not been received, hut to strangers notice by publi cation is sufficient though not observed by them. The dissolution arising from the withdrawal of a dormant partner requires no notice to creditors or others, as they have not known of his connection with the firm and have not looked to his credit. But the rule is otherwise if the dormant partner was in fact known to persons as a partner.

The question when the partnership is dissolved is a question of fact. If it is a partnership at will, the dis solution dates from notice to die copartners, as between the parties, but does not release the partners from be ing bound as to third persons or creditors until notice is given them. (Morrill v. Bissell, 99 Mich. 409.) If the dissolution is by decree, it dates from the rendition of the decree.

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