National Biscuit Company v. Stroud case brief

National Biscuit Company v. Stroud (N.C. 1959)

-This case involved a deadlock in a two-person partnership.
One partner can’t deny another equal partner power to bind the partnership. So,
deadlocks can’t stop decisions.

Lessons from this case:
o Very important to have a dispute resolution mechanism in the partnership
agreement. Options for resolving disputes include:
o Resolution (mediation, negotiation, etc.)
o Buy-out (dissociation)
o Dissolution (winding up) of the partnership