Asked by Nguy?n Tr?ng on May 29, 2024
Verified
A(n) ________ in the nature or time of payment of an obligation operates as a novation for an outgoing partner,when the creditor has knowledge of the partner's dissociation.
A) material modification
B) alteration
C) reasonable modification
D) industry change
Material Modification
A significant alteration to the terms of a contract that affects the rights and duties of the parties involved.
Novation
The substitution of a new contract in place of an old one, often involving a change in parties or the terms of the agreement, with the consent of all parties involved.
- Describe the impact of a partner's dissociation or the addition of a new partner on liabilities and partnership operations.
Verified Answer
MA
Margaret Ann DeuthMay 30, 2024
Final Answer :
A
Explanation :
A material modification in the nature or time of payment of an obligation operates as a novation for an outgoing partner,when the creditor has knowledge of the partner's dissociation.
Learning Objectives
- Describe the impact of a partner's dissociation or the addition of a new partner on liabilities and partnership operations.
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