Mark and James established a partnership firm dealing with textiles. Both of them contributed equally to the partnership during establishment. However, two years later James sold his share of the firm to Mike. Which of the following is legally permissible in such a scenario?
A) James is entitled to keep the money he received from Mike.
B) Mike can claim nondisclosure and reclaim the money from James.
C) Mark can sue Mike for buying the firm from James.
D) Mark can sue James and reclaim the other half.

Question

Quizplus · Accepted Answer

In a partnership, a partner can sell their share to another party unless restricted by the partnership agreement. James is entitled to keep the money from the sale to Mike.

Mark and James Established a Partnership Firm Dealing with Textiles