Doral,Esteban,and Fiona are general partners in Centreville Dentistry,a dental clinic.Their agreement states it is a breach of the agreement for any partner to assign his or her interest to a creditor without the consent of the other partners.Doral's assignment of his interest in the clinic to Hometown Lenders results in
A)nothing with respect to Doral or the clinic.
B)the automatic termination of the clinic's legal existence.
C)Doral's liability for all of the clinic's debts.
D)Doral's wrongful dissociation and liability for any damages.

Question

Quizplus · Accepted Answer

Doral's assignment of his interest to Hometown Lenders without the consent of the other partners constitutes wrongful dissociation. As per their agreement, this is considered a breach of the partnership agreement. Doral can be held liable for any damages caused by his dissociation, which may include compensating the remaining partners for their losses. This action does not automatically terminate the legal existence of the clinic, and Doral's liability for the clinic's debts will depend on the terms of their agreement and the laws governing partnerships.

Doral,Esteban,and Fiona Are General Partners in Centreville Dentistry,a Dental Clinic