Which of the following is true about successor's liability for predecessor's obligations?
A)Once continuation begins after dissociation,the creditors remain the creditors of the predecessor.
B)Partners may escape prior liabilities by forming new partnerships.
C)There has to be an agreement with creditors to eliminate liability for prior obligations.
D)The original partners are not liable for obligations incurred prior to dissociation.

Question

Quizplus · Accepted Answer

The original partners remain liable for obligations incurred prior to dissociation unless there is agreement with the creditors to the contrary.

Which of the Following Is True About Successor's Liability for Predecessor's