119. Partnership property transferred to partner.

Partners may transfer partnership property to one of themselves or to a limited company of which the partners are shareholders1, and such a transfer is valid against the firm's creditors2, if it is done in good faith3 and if it has been completed; but, if the agreement remains executory, the property remains joint4.

Similarly, if the personal representatives of a deceased partner sell his share to the surviving partner or partners, relying simply on a covenant of indemnity against the partnership debts, or if, on the true construction of the partnership agreement, they lose their right against the surviving partner