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Assume Carson Pays the Damages Suffered by Monte

Question 71

Multiple Choice

Assume Carson pays the damages suffered by Monte.Carson then asks J&M for a share of J&M's profits,which J&M refuses.Is J&M justified in denying Carson any share of the profits?


A) No,even though Carson is not considered a partner of J&M,he is entitled to a share of the profits up to the amount of damages paid to Monte.
B) Yes,even though Carson is considered a partner,he is not entitled to a share of the profits because he failed to seek approval of his partners for the deal.
C) Yes,even though Carson paid the debt,Carson is not a partner of J&M and is not entitled to profits.
D) No,even though Carson is not considered a partner of J&M,he is entitled to a share of the profits up to the amount of damages paid to Monte and any reasonable expenses.
E) No,Carson is now considered a partner of J&M and is entitled to a share of the profits.

Correct Answer:

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