Fact Pattern 37-3
Bryn, Cornell, and Duke are general partners in Equity Lending, a consumer credit, mortgage, and investment firm. Their agreement states that it is a breach of the agreement for any partner to assign his or her interest to a creditor without the consent of the other partners.
-Refer to Fact Pattern 37-3. Bryn, Cornell, and Duke decide to admit Giselle as a new partner in Equity Lending. Giselle's liability for partnership debts incurred before her admission is
A) limited to her capital contribution to the firm.
B) limited to her personal assets.
C) nothing.
D) unlimited.

Question

​Fact Pattern 37-3
Bryn, Cornell, and Duke are general partners in Equity Lending, a consumer credit, mortgage, and investment firm. Their agreement states that it is a breach of the agreement for any partner to assign his or her interest to a creditor without the consent of the other partners.
-Refer to Fact Pattern 37-3. Bryn, Cornell, and Duke decide to admit Giselle as a new partner in Equity Lending. Giselle's liability for partnership debts incurred before her admission is
A) ​limited to her capital contribution to the firm.
B) ​limited to her personal assets.
C) ​nothing.
D) ​unlimited.

Quizplus · Accepted Answer

Giselle's liability for partnership debts incurred before her admission is limited to her capital contribution to the firm because she is being admitted as a new partner and is not responsible for any debts incurred before her admission. This is a general rule that applies to all new partners in a partnership.

​Fact Pattern 37-3 Bryn, Cornell, and Duke Are General Partners in Equity Lending

Fact Pattern 37-3 Bryn, Cornell, and Duke Are General Partners in Equity Lending