The Right of Offset Doctrine

The right of offset doctrine

A) sets aside the ranking that partnership loans have higher legal priority than capital to facilitate the liquidation process.
B) enables the partnership fiduciary to offset the deficit capital balance of one partner with the surplus capital balance of another.
C) allows individual partner creditors to offset their claims against that partner's capital balance.
D) dictates that liquidation expenses must be offset against the partners' capital balances prior to distributions taking place.