Asked by Eisen Klein on Mar 10, 2024
Verified
Which of the following is true about the liability of a dissociated partner for obligations incurred while a partner?
A) To complete the requirements for novation,a dissociated partner must also secure his release by the partnership's creditors.
B) Dissociated partners are not liable to partnership creditors for partnership liabilities incurred while they were partners.
C) Continuing partners must not indemnify dissociated partners from liability on partnership obligations.
D) A creditor's agreement to release an outgoing partner from liability may be implied,but usually it is express.
Liability
Legal responsibility for one's actions or omissions, including the obligation to make restitution.
Dissociated Partner
A term used in business partnerships to refer to a member who has ceased their association with the partnership, affecting their rights and responsibilities towards the partnership.
Novation
A legal process by which an old contract is replaced by a new agreement, transferring rights and obligations to a different party.
- Learn the rules governing the liability of dissociated partners for obligations incurred while they were partners.
Verified Answer
AW
Aaron WorthingtonMar 10, 2024
Final Answer :
A
Explanation :
Continuing partners are required to indemnify dissociated partners from liability on partnership obligations.To complete the requirements for novation,a dissociated partner must also secure his release by the partnership's creditors.
Learning Objectives
- Learn the rules governing the liability of dissociated partners for obligations incurred while they were partners.