Asked by Marina Carosella on Apr 25, 2024
Verified
Discuss a partner's authority to borrow money during winding up.
Borrow Money
The act of receiving funds from a lender under the agreement that the funds will be repaid, usually with interest, at a future date.
Winding Up
The process of dissolving a company, involving the selling of assets, paying off creditors, and distributing any remaining assets to shareholders.
- Explore the power of partners in charge of winding-up to manage the affairs of a partnership during its dissolution.
Verified Answer
NG
niwasasira gilian7 days ago
Final Answer :
Usually,the implied authority of a winding-up partner includes no power to borrow money in the name of the partnership.Nonetheless,when a partner can preserve the assets of the partnership or enhance them for sale by borrowing money,he has implied authority to engage in new borrowing.A partner may borrow the money needed to refinance the loan,thereby preserving the asset.A partner may also borrow money to perform executory contracts.
Learning Objectives
- Explore the power of partners in charge of winding-up to manage the affairs of a partnership during its dissolution.