Bentley vs. Craven (1853)

   Craven is a partner in a firm in the business of sugar. When the prices in the market were particularly low, he brought a huge stock of sugar with his own personal money and stored in same in his own go-downs. Soon the firm needed to purchase sugar for it business and entrusted to job purchase the sugar to Craven. Craven immediately supplied the required quantity of sugar from his own stock at the prevailing market rates. Craven made a good amount of profit and later, the partners of firm come to know about this. They demanded the different amount of craven’s cost price and selling price to the firm be paid to the firm. Craven contended that there was no deception and he had used only personal resources and he wanted he could have sold the sugar to other people at the same market rate.

   The firm was entitled to an account for profit made by Craven as well as to be paid the profit craven earned in the said transaction. This is so because all partners must work for the greatest common good and no partner is entitled to personal profit to transaction of the firm. Further more a partner is duty bound to give account of all the things that concern and affect the business of the firm.