PAGE V. PAGE
55 Cal.2d 192 (1961)
NATURE OF THE CASE: The Court held that the partnership between P and D was for a term, namely, such reasonable time as was necessary to enable the partnership to repay from partnership profits, indebtedness incurred for the operation of such business. The supplying partner appealed the decision.
FACTS: P and D were partners in a linen supply business. They entered into an oral partnership agreement in 1949. Each partner contributed $43,000 for the purchase of assets to conduct the business of the partnership. Until 1957, they lost $62,000. The partnership's major creditor is a corporation wholly owned by P, that supplied linen and machinery necessary for the day to day operation of the business. The corporation holds a $47,000 demand note. In 1958, things turned around and the partnership earned $3,824.41. In the first three months of 1959, they earned $2,282.30. Despite this improvement, P wanted to terminate the partnership. The trial court found that the partnership was for a term. D testified that the terms of the partnership were to start the business and let the business operation pay for itself after putting in so much money and that this partnership was to be the same as other partnerships the two had started together. There was testimony that one of the former agreements provided in writing that the profits were to be retained until all obligations were paid. P appealed.
ISSUE:
RULE OF LAW:
HOLDING AND
DECISION:
LEGAL ANALYSIS:
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