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37.
Right of outgoing partner in certain cases to
share subsequent profits.- Where any
member of a firm has died or otherwise ceased
to be a partner, and the surviving or continuing
partners carry on the business of the firm with
the property of the firm without any final settlement
of accounts as between them and the outgoing
partner or his estate, then, in the absence
of a contract to the contrary, the outgoing
partner or his estate is entitled at the option
of himself or his representatives to such share
of the profits made since he ceased to be a
partner as may be attributable to the use of
his share of the property of the firm or to
interest at the rate of six per cent. per annum
on the amount of his share in the property of
the firm;
Provided that where by contract
between the partners an option is given to surviving
or continuing partners to purchase the interest
of a deceased or outgoing partner, and that
option is duly exercised, the estate of the
deceased partner, or the outgoing partner of
his estate, as the case may be, is not entitled
to any further or other share of profits, but
if any partner assuming to act in exercise of
the option does not in all material respects
comply with the terms thereof, he is liable
to account under the foregoing provisions of
this section.
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