Theo, a Member of TGI Partnership, Withdrew from the Partnership

question 9

Essay

Theo, a member of TGI partnership, withdrew from the partnership and duly notified the other members. The firm was an at-will partnership and the parties parted amicably, posting a notice in the local newspaper of the dissolution of their firm. Cosmo, a customer who had conducted business with Theo several times, did not see the newspaper notice and was not informed of the dissolution. Later, Theo approached Cosmo concerning a transaction similar to those Cosmo had engaged in before with Theo acting on behalf of TGI. Cosmo placed an order, gave a substantial down payment to Theo, and received a receipt on TGI stationery from him. Theo thereafter absconded with the down payment, and TGI failed to honor the contract. Cosmo sued the other members of TGI partnership. Discuss their potential liability.

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Definitions:

Pitch Diameter

The effective diameter of a screw thread, halfway between the major and minor diameters, crucial for thread engagement and measurement.

Diametral Pitch

The ratio of the number of teeth to the pitch diameter of a gear, indicating how densely the teeth are packed.

Chordal Thickness

A measurement of the thickness of an object at the midpoint of a chord, often used in reference to circular objects to specify a specific section's thickness.

Diametral Pitch

A measure of the fineness of a gear, computed as the number of teeth per unit diameter.