Fact Pattern 30-1B (Questions B10-B13 apply)
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 30-1B.Cornell's assignment of his interest in Equity Lending to Financial Consultants Corporation results in
A)nothing with respect to Cornell or Equity Lending.
B)the automatic termination of Equity Lending's legal existence.
C)Cornell's liability for all of Equity Lending's debts.
D)Cornell's wrongful dissociation and liability for any damages.

Question

Quizplus · Accepted Answer

Cornell's assignment of his interest without the consent of the other partners constitutes wrongful dissociation, and he is liable for any damages resulting from his conduct. The partnership continues to exist, and Cornell remains liable for any debts or obligations incurred before his dissociation. Financial Consultants Corporation does not become a partner in Equity Lending.

Fact Pattern 30-1B (Questions B10-B13 Apply)