Rosella, a general partner of Jones and Thorne, extends credit of $2,000 to a friend.This is in violation of a specific agreement not to extend credit over $1,000 without the other partners' approval.Rosella will be held personally liable to the partners for any unpaid debt since she violated the duty of obedience.

Question

Rosella, a general partner of Jones and Thorne,  extends credit of $2,000 to a friend.This is  in violation of a specific agreement not to extend credit over $1,000 without the other partners' approval.Rosella will be held personally liable to the partners for any unpaid debt since she violated the duty of obedience.

Quizplus · Accepted Answer

Rosella violated the duty of obedience by extending credit beyond the agreed limit without the consent of the other partners, making her personally liable for any resulting unpaid debt.

Rosella, a General Partner of Jones and Thorne, Extends Credit