Which of the following is true regarding an insolvent partnership under the UPA?
A) The partners must contribute their respective share to the losses in order to pay creditors.
B) If one of the partners is out of the jurisdiction and refuses to contribute,the other parties must contribute the additional amount necessary to pay the firm's liabilities in the relative proportions in which they share the profits.
C) Any partner who pays an amount in excess of his proper share of the losses has a right of contribution against the partners who have not paid their share.
D) All of these are true.

Question

Quizplus · Accepted Answer

All of the statements are true regarding an insolvent partnership under the UPA. According to Section 25 of the Uniform Partnership Act, when a partnership is insolvent, the partners must contribute their respective share to the losses in order to pay creditors. If one of the partners is out of the jurisdiction and refuses to contribute, the other parties must contribute the additional amount necessary to pay the firm's liabilities in the relative proportions in which they share the profits. And finally, any partner who pays an amount in excess of his proper share of the losses has a right of contribution against the partners who have not paid their share. Therefore, option D is the correct choice.

Which of the Following Is True Regarding an Insolvent Partnership