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1.when one retires i understand one is still liable to the firms debt. will that mean that the partnership had come to an end.
2.what does it mean for a partner to have an indemnity from the remaining partners with respect to debt1) no the partnership has not come to an end but note that the retired partner is liable if no notice hes been sent.
2)It means that the other partners and equally new partners can decide to pay back the debts that that partner had contracted.Fidele is half right! When one retires, the partnership IS ended but the retiring partner does not escape from existing debts nor from future debts unless and until notice is given to all the firm’s creditors and to the public at large (by way of advertisement in local newspapers)
An indemnity has the effect of reassuring the retired partner that the remaining partners will accept responsibility for the firm’s debts and that the retired partner will face no further responsibility for those debts. It sometimes happens that a retirement coincides with a new partner being introduced. Where the new partner takes responsibility for the firm’s debts and the retiring partner is relieved of any further liability, that is called a “contract of novation”
Ok?
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