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Page v. Page

Supreme Court of California

359 P.2d 41 (1961)

Facts

Page P. (plaintiff ) and Page D. (defendant) entered into an oral partnership agreement to run a linen supply business. Page P. and Page D. did not discuss a specific term for the partnership, but agreed that the partnership should stay in existence long enough to make a profit and pay its debts. The partners did not stipulate how long the partnership would last if it incurred financial losses. The partnership was unprofitable for eight years, but it made a profit in the following two years. In spite of the partnership’s profitability, Page P. sought to dissolve it. The trial court found that the parties’ intention was that their partnership should last only until it was profitable enough to pay all debts and operational expenses. Hence, the trial court ruled in favor of Page D., holding that the partnership had a specific term and was not a partnership-at-will.

Rule of Law

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Issue

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Holding and Reasoning (Traynor, J.)

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