197. Third party debts and liabilities.

197.     Third party debts and liabilities.

After dissolution, each partner has authority to give a valid security on partnership property for money required for the completion of a pending contract1; and any partner may withdraw money on deposit with a bank2, or receive a debt and give a release or take a bill for it, even though the terms of dissolution provide that, as between the partners, the debts should be received by only one of them3.

A recognition of a debt in a letter from one ex-partner of a dissolved firm to another is not an acknowledgment