This section is from the book "Popular Law Library Vol8 Partnership, Private Corporations, Public Corporations", by Albert H. Putney. Also available from Amazon: Popular Law-Dictionary.
An incoming partner is not liable for debts of the firm contracted before he became a partner as the members were not his agents in contracting them.23 This does not apply to a continuing contract relating to property furnished to the firm after the admission of the new member, or to the payment for use of property continuing in use after such admission. That is, the new member is bound on obligations of the old firm for the receipt or use of property by the new firm.24
20 Peacock vs. Cummings, 46 Pa. St., 434; Johnston vs. Dutton, 27 Ala., 253; Western Stage Co. vs. Walker, 2 Iowa 513; 65 Am. Dec, 789; Staples vs. Sprague, 75 Me., 458; Gray vs. Portland Bank, 3 Am. Dec, 156; notice to minority, Western Stage Co. vs. Walker, supra.
21 Zabriskie vs. Hackensack R. R. Co., 90 Am. Dec, 617; Livingston vs. Lynch, 4 Johns, Ch. 573.
23 Blisset vs. Daniel, 10 Hare, 493.