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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Liability of incoming and outgoing partners
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.
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?