The Third: Xxxxx x Sample Clauses

The Third: Xxxxx x. Xxxxx (1944)130 Xxxxx, Xxxxx, and Xxxxxx entered into a written contract of partnership in January 1917 for the purpose of buying and farming "the Norton farm."131 This was a rice farm. The partnership took over Norton's lease on the farm in exchange for $12,000, including the teams, tools, and machinery. Xxxxx took a half interest in the partnership, Xxxxx 4/10ths, and 124. Id. at 311. 125. Xxxxx x. Xxxx, 40 Ky. 159 (Ky. Ct. App. 1840), discussed supra Part I.C. 126. Xxxxxxx x. Xxxxxxx, 61 S.W. 28, 28 (Ky. Ct. App. 1901), discussed supra Part I.C. 127. Xxxxxx, 80 S.W.2d at 308-09. 128. Id. at 315. 129. The opinion is Xxxxxxxxx x. Xxxxx, 69 S.W.2d 539, 542 (Tex. Civ. App. 1934), cited in Xxxxxx, 80 S.W.2d at 310. The language in Xxxxxxxxx states: In partnership, where work is contributed on one side and money on the other, the partner from whom the money comes may contribute only the use of the money or the property of it. If he contributes the use of it, and still keeps his property in the principal, so that the joint stock is to be considered as made up of the labor of one partner and the use of the other’s money, it is plain that, supposing the principal to be safe, it belongs to him, and that, supposing it to be lost, he alone bears the loss. Id. at 542 (quoting X. Xxxxxxxxxx, INSTITUTES OF NATURAL LAW at 140 (2 Am. Ed. 1802)). 130. Xxxxx x. Xxxxx, 179 S.W.2d 789 (Tex. Civ. App. 1944). 131. Id. at 791. 2009] SERVICE PARTNER CAPITAL AGREEMENTS 31 Xxxxxx 1/10th. The agreement provided that Xxxxx would furnish all the money, or secure a loan for the partnership, initially to buy the Norton property. The other partners agreed to pay 8% interest annually as it accrued on the amount of money required to pay for their respective interests. The agreement also provided that Xxxxx might supply money to buy livestock, too, on the same basis. Xxxxxx was to be in active charge and control of the farm and receive $75 per month as salary. The expenses of the operation were to be paid first from gross revenues. The residue was to be divided among the partners in proportion to their shares. The arrangement was to last for five years and was known as B.E. Xxxxx & Company. Xxxxx later purchased the interests of Xxxxxx.132 Xxxxx died on January 30, 1921. His estate sued Xxxxx in 1926 over continuing partnership expenses and also for half of what Xxxxx contributed to the partnership in the first place, which it claimed formed the capital of the partnership.133 Eventually, ...