When Continuing Partners Agree to Relieve the Withdrawing Partners of Liability

question 45

Multiple Choice

When continuing partners agree to relieve the withdrawing partners of liability on the debts of the old partnership,the act of novation can take place which involves:

• A)an agreement by the creditor with both the withdrawing partners and the continuing partners.
• B)an agreement by the creditor with the withdrawing partners themselves and not their representatives.
• C)an agreement by the creditor only with the continuing partners.
• D)an agreement by the creditor with the new partners replacing the withdrawing partners to hold them liable for the debts.

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Definitions:

Acronym

A word formed from the initial letters of a phrase or series of words.

Antipyretic

A type of medication or substance that reduces fever.

Sepsis

A life-threatening condition caused by the body's response to an infection, leading to tissue damage, organ failure, and potentially death.

Milligram

A unit of mass equal to one thousandth of a gram.