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Liability of incoming and outgoing partners

YWYeo Wen Xin9y ago
Hi Sir, Can you please explain "A person who is admitted as a partner into an existing firm does not thereby become liable to the creditors of the firm for anything before he become a partner." which is under S19. Is it means the incoming partners is not liable for the firm's previous debts unless there have a novation of partnership? Advance thanks to you.
MikeLittleMikeLittleTutor9y ago#1
That's exactly what it means, yes Equally, a retiring partner remains liable for the debts of the firm incurred before s/he retired ... unless there is a contract of novation OK?
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