The following excerpt is from Williams v. Whedon , 109 N.Y. 333, 16 N.E. 365 (N.Y. 1888):
It is not within the contemplation of the contract of partnership that an agency is thereby created which, during its continuance, authorizes one partner to destroy or annul it; and he cannot therefore make a disposition of firm property which has that effect. Havens v. Hussey, 5 Paige, 30. But in the event of the dissolution of the firm, effected by the death of one of its members, the winding up of the business of the firm is the precise result which is contemplated by the agreement; for it is provided by law that the survivors shall proceed to close up the partnership business. If the assets, in such case, are insufficient to pay the firm debts in full, it is just and proper for the survivors to distribute them in accordance with the principles of justice and equity, and pay one creditor in preference to another, if they deem that equitable. It was never in the contemplation of the contract of partnership that strangers, as the representatives of a deceased partner are, should have a voice in the determination of questions relating to the distribution of the firm assets among its creditors. They have the right to require them to be applied upon the firm debts; but, if they are insufficient to pay such debts in full, they have no interest [109 N.Y. 340]whether the deficiency shall be payable to one creditor
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