A, B and C are partners in a firm. C retires and X admitted as a new partner. The firm did not give a…
As no public notice of C's retirement was given, C remains liable by holding out (s.32(3)) to Z, who dealt without notice, while the incoming partner X and continuing…
Choose your answer
A, B and C are partners in a firm. C retires and X admitted as a new partner. The firm did not give a public notice on the change but continued its business in its old firm name. Z, a customer of the firm, deals with the firm after the change and the firm becomes indebted to him:
Answer and explanation
Correct answer A
As no public notice of C's retirement was given, C remains liable by holding out (s.32(3)) to Z, who dealt without notice, while the incoming partner X and continuing partners A and B are also liable for the post-change debt, so "Z can sue A, B, C and X".
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