[1866.] ELIZA REYNOLDS against BOWLEY and another. [Friday, November 16th.] Bankrupt The bankrupt and the plaintiff, his sister, occupied a dairy farm and carried on the business of a cowkeeper; the stock on the farm was paid for by them in equal shares, but the business was to be carried on in the name of the bankrupt. The bankrupt bought and sold the stock from time to time for the benefit of himself and the plaintiff: the household and farm expenses were paid for out of the profits of the business. A partnership account was kept between the bankrupt and the plaintiff; they had no joint banking account: the bankrupt was rated to the relief of the poor, &c.; all receipts for rates and taxes were given, all business disposition transactions were conducted, all debts in respect of the farming business of bankrupt. were contracted, and all sales and purchases were made in his name only. Apparent The plaintiff devoted her whole time and labour in assisting the bank- owner. rupt in the management of the joint business, but it was not generally Dormant known that she was a partner. The Court having power to draw partner. inferences of fact: Held, I. That the plaintiff had allowed the bankrupt to appear as sole owner of the business. 2. That the goods of the partnership were in the order and disposition of the bankrupt by consent and permission of the true owner, within The Bankrupt Law Consolidation Act, 1849, 12 & 13 Vict. c. 106. s. 125. HIS was an action to recover 2007., being the agreed THIS moiety of the proceeds of goods sold by the defendants; and by consent the following case was stated without pleadings. The plaintiff was the sister of T. H. Reynolds, of the Marsh Farm, in the parish of Swindon, in the county of Wilts, cowkeeper, who was adjudged bankrupt on the 9th December, 1864. The defendants were creditors' assignees appointed under the bankruptcy. In April, 1861, J. Reynolds, the father of the bankrupt and of the plaintiff, then occupying the farm which was a dairy farm, and carrying on the business of a cowkeeper there, gave up possession of the farm to the bankrupt and the plaintiff and sold the stock on the [1866.] REYNOLDS v. BOWLEY. farm to them at a valuation for 650l. and the bankrupt "2751. "On demand I promise to or his executors 2751., and 5 annum. "Eliza Reynolds. "Six months notice to be given before demand." Immediately upon the completion of the purchase of the stock the bankrupt and the plaintiff entered into the following agreement: "This is to certify that we the undersigned T. H. Reynolds and Eliza Reynolds agree to commence business at the Marsh Farm from Old Lady Day, 1861, taking to all the farm stock from our father Mr. John Reynolds for the sum of 650%. and agree to carry on the business with an equal share of all the farm profits, each paying an equal sum of 3251. each for the farming stock and an equal share of all farm expenses. The household furniture all belonging to T. H. Reynolds except the furniture in Eliza Reynolds's bedroom which is her own property. We also agree to take the Marsh Farm of A. L. Goddard Esq. on a fourteen years lease, and, in case of the death of T. H. Reynolds, Eliza Reynolds to retain her interest or share in the said lease except in the case of the marriage of the said Eliza Reynolds; in that case Eliza Reynolds agrees to withdraw from partnership in the farm altogether on receiving the half amount of money due from the farm to her by T. H. Reynolds. Eliza Reynolds agrees to be a sleeping partner, the business to be conducted and carried on in the name of T. H. Reynolds. In case of a marriage of Eliza Reynolds a valuation of the farm effects to take place at the Old Lady Day following such marriage, and a twelve months notice to be given for paying off Eliza Reynolds's share in the farm stock and effects; all farm receipts and expenses and all sums of money drawn out of the business to be entered in the farm book kept for the purpose. "Witness W. Reynolds." (Signed) "T. H. Reynolds. "Eliza Reynolds." In pursuance of this agreement both the bankrupt and the plaintiff continued from the date thereof to reside upon the farm and carried on the business of cowkeepers until November, 1864. A lease of the farm for fourteen years was granted to the bankrupt alone on the 6th of July, 1861. The plaintiff and the bankrupt both resided in the farmhouse and the business was carried on according to the terms of the agreement, and under and by virtue thereof the bankrupt bought and sold the stock from time to time for the mutual benefit of himself and the plaintiff. The household and farm expenses were paid out of the profits. The interest due on the promissory notes respectively was also paid out of the profits. The bankrupt and the plaintiff drew equally on account of their share of the profits, and in April, 1864, the bankrupt gave the plaintiff his promissory note for 100%. as her share of the profits at that time. A partnership account book was kept between the bankrupt and the plaintiff, at the [1866.] REYNOLDS V. BOWLEY. [1866.] REYNOLDS V. BOWLEY, commencement of which was written the following agreement or memorandum in writing: "This is to certify that we the undersigned Thomas Hazell and Eliza Reynolds commence business at the Marsh Farm from Old Lady Day, taking to all farm stock from our father Mr. John Reynolds for the sum of 6507., and agree to carry on the business with an equal share of all the farm profits, each paying equal sum of 3251. each for the farm stock not including household furniture which will all belong to T. H. Reynolds except the furniture in Eliza Reynolds's bedroom which will be her own private property. We also agree to take the farm of A. L. Goddard Esq. on a fourteen years lease, and in the case of death of either party the half advantage of lease to accrue to the survivor. All monies drawn out from the business for private uses to be entered in this book each party always drawing equal. All labour and farm expenses to be entered in this book and all monies received to be entered. "Witness J. Reynolds." (Signed) "T. H. Reynolds. "Eliza Reynolds.” They had no joint banking account. The bankrupt had a separate banking account, but it was his private banking account and had no direct reference to the farm or stock, or profits or expenses thereof, and the bankrupt alone during the time he and the plaintiff resided on the farm was rated to the relief of the poor, &c.; and all receipts for rates and taxes of all descriptions were given in the bankrupt's name, and the plaintiff's name never appeared in the business save in the partnership book. All business transactions were conducted solely in the bankrupt's name, and all debts REYNOLDS V. BOWLEY. in respect of the farming business were contracted solely [1866.] in his name. All sales and purchases were made in the bankrupt's name only. All this was done with the plaintiff's consent and permission, nor did the plaintiff interfere in any way in the management of the business, or in any sales or purchases, but the plaintiff who resided with the bankrupt devoted her whole time and labour in assisting him in the management of their joint business in which, although known to the plaintiff's relatives and friends and to some of the tradesmen of Swindon, it was not generally known in business that she was a partner. The plaintiff and the bankrupt were however in the habit of drawing equally on account of their share of the profits, and the moneys so drawn by them were entered in the partnership book of account headed or entitled as the Marsh Farm Accounts, as also the rent paid to the landlord and all payments for rates and taxes of every description, and all sums of money or bills paid by the plaintiff and the bankrupt to the different tradesmen for goods supplied to them; the amounts or respective moieties of each of them the plaintiff and bankrupt respectively, in discharge of such bills, being set out separately in the book of account. On the 16th November, 1864, the bankrupt being embarrassed on account of bills accepted by him for a brother, absconded, and then committed an act of bankruptcy of which the plaintiff then had notice. The plaintiff remained in the farmhouse and continued to sell the milk and other produce of the farm until the seizure after mentioned. On the 9th November, 1864, T. H. Reynolds was adju dicated bankrupt upon that act of bankruptcy, and |