Bailey v. Clark

<p>Where C furnished money to D to be employed in trade, either by D alone or m partnership with a third person, the net profits to be equally divided between C and D, and D entered into partnership with B, it was held that as between C and D this was only a loan, though as to creditors dealing with D they would have been considered as partners ; but that B, who, before he entered into partnership, knew the nature of the transaction between C and D, was not entitled to claim against C as a partner of D.</p> <p>B, as surviving partner of D, erroneously supposing the firm to be solvent and indebted to D, paid money to C on account of his claim against D, and thereupon took a receipt for the same of D’s administratrix, and she took one of C. Held tnsr. B’s remedy to recover back the money, as paid by mistake, was against the administratrix, and not against C.</p>