The doctrine that allows a creditor to seek recovery from the purchaser of assets even when the purchaser did not expressly assume such liabilities as part of the purchase is called
A) Joint and several liability
B) Unlimited liability
C) Successor liability
D) Contributory liability

Question

Quizplus · Accepted Answer

Successor liability is a legal doctrine that allows creditors to seek recovery from the purchaser of a company's assets for the liabilities of the seller, even if the purchaser did not expressly assume those liabilities. This doctrine is particularly relevant in asset purchases where the buyer may be held responsible for certain liabilities of the seller, despite not having formally agreed to take them on.

The Doctrine That Allows a Creditor to Seek Recovery from the Purchaser