Davis v. McKibben

1. Where one partner is inactive in the business and lias no knowledge of the state of the business, and the other partner, with knowledge of these facts knowingly makes a false representation as to the extent of the partnership’s liabilities to third persons and thereby induces the other partner to purchase the business and become liable for its unpaid debts, and where the partner purchasing the business relies upon these representations, the partner making the representations is guilty of a fraud upon the other partner and is liable to' the latter in damages. The partner who is inactive in…