In the Event That Notice of a Retiring Partner Is

question 39

Multiple Choice

In the event that notice of a retiring partner is given to all business associates of the partnership,the retiring partner will be liable for:

• A)only the debts of the partnership incurred after they retired.
• B)only the debts of the partnership incurred before they retired.
• C)none of the debts of the partnership.
• D)all of the debts of the partnership.

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Definitions:

Merger Clause

A provision in a contract stating that the written document contains the entire agreement between the parties, excluding prior verbal agreements.

Integrated Contracts

Legal agreements that combine all terms and conditions outlined in several related documents into a single, comprehensive document.

First-Assignment-in-Time Rule

A legal principle that gives priority to the first assignee in time when multiple assignments have been made for the same rights or property.

Intended Beneficiaries

Persons or entities for whom a contract creates a benefit, even though they are not a direct party to the contract.