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Liability of incoming and outgoing partners

This topic has 1 reply, 2 voices, and was last updated 8 years ago by MikeLittle.

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May 7, 2017 at 2:24 pm #385194
karen443
Member
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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.
May 7, 2017 at 4:18 pm #385219
MikeLittle
Keymaster
- Topics: 27
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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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