MNO was a partnership that contracted for and performed a variety of painting jobs. Before the partnership was dissolved, MNO had entered into a contract under which MNO was supposed to paint every room in the state capitol building. At the time of the partnership dissolution, MNO had not yet performed the work called for by this contract. If the partners involved in the winding up elect to perform the contract, they _____.

Question

Quizplus · Accepted Answer

In a partnership involved in the construction business, it may be desirable to finish contracts for constructing large buildings that may take two or three years to complete. In order to finish these jobs, the winding-up partners would have authority to enter into new contracts with subcontractors, with material suppliers, and with workers. As a result, it may be necessary that the winding-up partners borrow money on behalf of the partnership in order to complete these contracts.

MNO Was a Partnership That Contracted for and Performed a Variety