Messitt and McNulty spend $50, 000 each to form a law partnership.On the first day someone trips over a potted plant in their lobby and sues them for $400, 000.Which of the following is true?
A)If a $400, 000 judgment is against the partnership, then each partner will have to pay $200, 000.
B)If a $400, 000 judgment is against the partnership and if McNulty cannot afford to pay any of it, then Messitt is liable for $400, 000.
C)Messitt's liability is limited to $300, 000 because she owns three quarters of the firm.
D)Each individual partner cannot be sued for more than $200, 000.
E)Only McNulty is personally responsible for the damages because he was the one who put the potted plant in the office.

Question

Quizplus · Accepted Answer

In a partnership, each partner is jointly and severally liable for the debts and obligations of the partnership. This means that if McNulty cannot pay, Messitt could be held responsible for the entire $400,000 judgment.

Messitt and McNulty Spend $50, 000 Each to Form a Law