Glen,Dale,and Al are partners who own Fizz.Glen made capital contribution of $5000,Dale's was $15 000 and Al's was $10 000.Glen is a general partner and he oversees management of the Fizz business.The partnership borrowed $30 000 from the bank.The partners have no agreement relating to the sharing of profits and losses.Fizz became insolvent and unable to repay the loan.The bank sued Dale personally and recovered the full $30 000 from him.Dale then sued Glen.When Dale's lawyer provided him with advice,what amount did she likely indicate he would be able to legally recover from Glen?

Question

Glen,Dale,and Al are partners who own Fizz.Glen made capital contribution of $5000,Dale's was $15 000 and Al's was $10 000.Glen is a general partner and he oversees management of the Fizz business.The partnership borrowed $30 000 from the bank.The partners have no agreement relating to the sharing of profits and losses.Fizz became insolvent and unable to repay the loan.The bank sued Dale personally and recovered the full $30 000 from him.Dale then sued Glen.When Dale's lawyer provided him with advice,what amount did she likely indicate he would be able to legally recover from Glen?

Quizplus · Accepted Answer

As a general partner, Glen has unlimited personal liability for the debts of the partnership. Therefore, Dale can legally recover the amount of his capital contribution, which was $15,000 (half of the total capital contributions). Glen cannot be held liable for more than the amount of his capital contribution, which is $5,000.

Glen,Dale,and Al Are Partners Who Own Fizz