A whole firm may become bankrupt, or some or one only of the partners may become so, whilst the remaining members may be solvent ; but those only of the partners who have committed acts of bankruptcy are to be deemed bankrupts ; and to constitute two or more bankrupts under a single adjudication, there must be evidence of joint trading. Upon the bankruptcy, the whole of the bankrupt's property vests absolutely in the assignees, who have the eame remedy by action for the recovery of the debts due to the bankrupt, and for the redress of all civil injuries with respect to the property passing to them under the adjudication, as the bankrupt would have had if none had been made. Accordingly, when the bankruptcy is separate, the solvent partners join with the assignees in an action for the recovery of the joint debts. On the bankruptcy of one partner, the solvent partners become tenants in common with the assignees of all the partnership effects. Upon the bankruptcy of one partner, under a separate adju dication made against him, his assignees take all his separate property and all his interest in the joint property ; and if a joint adjudication {ague against all, the assignees take all the joint property, and all the property of each individual partner. Joint estate ia that in which the partners are jointly interested for the purposes of the partnership at the time of the bankruptcy. Separate estate is that in which the partners are each separately interested at that time. Joint debts are those for which an action, if brought, must be brought against all the partners constituting the firm ; In all oases therefore when a partner becomes liable for a debt contracted by his co-partners, a joint debt Is created, and the creditor Is a joint creditor of the firm.
Separate debts are those for which the creditor can have his remedy at law against that partner only who contracted them.
The rules relating to joint-stock companies, banks and milling adventures not regulated by charters of incorporation or special custom were formerly exactly the same as those of any other kind of partnerships. But recent legislation has considerably modified the position of these associations, by introducing under certain restrictions, the principle of limited liability. The stmt. 19 & 20 Viet. e. 47 (1856) amended by some subsequent acts, now regulates most joint-stock companies. The stet. 20 & 21 Vict. e. 49 (1857), and 21 & 22 Vict. c. 91 (1858) apply to joint-stock banking companies, the latter statute enabling these bodies to avail themsClves if they please of the principle of limited liability. For more detailed information the reader is referred to the article JOINT-STOCK Cost PANIES.
A bill for consolidating the enactments on this subject was introduced in the late session of parliament (1860), but did not pate into Law.
The legal condition of part-owners of ships is considered under Sure.
The chief rules of Roman law as to partnership may be collected from Gahm, Ili. 148.154; Dig.,' xvii., tit. 2; Cicero, Pro Publio Quin tio.' (Collyer 'On Partnership,' and Blackst. Comm., v. ii., p. 526, Mr. Kerr's edition.)