Leonard,Ted,and Julius are partners at Jutle Associates.They signed a two-year lease agreement with Property Company for business purposes.Five months into the new agreement,Leonard dissociates from the partnership.Under what circumstances will Leonard no longer be liable on the lease agreement?
A)Leonard gives proper notice to Property Company of his intent to dissociate from Jutle.
B)The three partners and Property Company enter into an appropriate novation agreement.
C)Leonard filed a Statement of Dissociation more than 90 days prior to leaving the partnership.
D)Property Company will not serve to relieve Leonard of liability under the lease agreement.

Question

Leonard,Ted,and Julius are partners at Jutle Associates.They signed a two-year lease agreement with Property Company for business purposes.Five months into the new agreement,Leonard dissociates from the partnership.Under what circumstances will Leonard no longer be liable on the lease agreement?
A)Leonard gives proper notice to Property Company of his intent to dissociate from Jutle.
B)The three partners and Property Company enter into an appropriate novation agreement.
C)Leonard filed a Statement of Dissociation more than 90 days prior to leaving the partnership.
D)Property Company will not serve to relieve Leonard of liability under the lease agreement.

Quizplus · Accepted Answer

Dissociated partners remain liable to partnership creditors for partnership liabilities incurred while they were partners;however,a dissociated partner's liability may be eliminated by the process of novation.

Leonard,Ted,and Julius Are Partners at Jutle Associates