florance wee
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Report Thread starter 6 years ago
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hi everyone.

Here is a judgement call question ... i would like to ask how you would dargue for this case?

​Should partners of a business be held personally liable for the debts of the business, or should their business activities and debts be kept separate from their personal activities?

John and Jeff formed a partnership and started selling cookies based on a secret recipe they created. After one year of strong sales, Jeff left the company with $30000 cash and was never heard of again. Now, the creditors are requesting payment from John to satisfy a loan Jeff signed. if john can't make the payment from what is left in the business, who will the bank look to for payment...

I do not understand... can please explain?? :'(

Regards,

Florance
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MahmoodReza
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In an unincorporated partnership each partner is jointly & severally liable for the debts of the partnership - ie one partners actions binds the other partners
In your example the remaining partner is personally liable for the partnership debts


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