If, upon dissolution of a partnership, one partner pays liabilities of the partnership that are greater than the liquidated assets of the partnership, which of the following is true?

Question

Quizplus · Accepted Answer

In a partnership, when one partner pays more than their share of the partnership's liabilities upon dissolution, they have a right of contribution against the other partners. This means they can seek to recover the excess amount paid from the other partners, regardless of whether those partners were managing the partnership or not. This principle ensures fairness and equitable distribution of the partnership's debts among all partners.

If, Upon Dissolution of a Partnership, One Partner Pays Liabilities