Section
If the working partner knowingly purchases someone who becomes free upon entering the capital provider’s ownership, and the working partner is solvent and there is a profit on the day of purchase, the slave is emancipated, and the working partner must pay the capital provider his capital and his share of the profit, if there is a profit on the day of purchase. If there is no profit on that day, the working partner is required to pay only the purchase price, even if the slave’s value exceeds it. This is because the capital provider cannot validly derive a profit from him, since he becomes free upon entering his ownership.
Section
If the working partner is insolvent and there is a profit on the day of purchase, enough of the slave is sold to cover the capital provider’s capital and share of the profit, and the remainder, if any, is emancipated. If the slave’s value falls short of the capital and the capital provider’s share of the profit, he is sold in full for the capital provider’s benefit, and the working partner remains liable for the shortfall in the capital and the capital provider’s share of the profit.
Section
If, however, the working partner purchases him unknowingly, he becomes free upon entering the capital provider’s ownership. If the working partner has a share of profit in him on the day of purchase, the capital provider must pay the assessed value of the working partner’s share, provided he has the means, as in the case of his gift of a jointly owned slave. If he lacks the means, the working partner’s share remains enslaved. In this case, it makes no difference whether the working partner is solvent or insolvent.
Section
Clarifying the Wording of the Book Concerning This Case
The statement in the book, “If the working partner purchases the capital provider’s father or son without knowing it, they become free upon entering the capital provider’s ownership,” means that this occurs on the day of purchase. The statement, “If there is a profit in them, the working partner is paid from the capital provider’s funds an amount equal to his share of the profit under their profit-sharing agreement,” means that there was a profit in the funds on the day of purchase. For example, the capital of the profit-sharing partnership might be one hundred, on which he makes another hundred in profit, and then purchases them