Fact Pattern 27-3
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 27-3. 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

Fact Pattern 27-3
​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 27-3. 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.

Quizplus · Accepted Answer

Cornell's assignment of his interest to Financial Consultants Corporation without the consent of the other partners is a breach of the partnership agreement. This amounts to wrongful dissociation, which could result in Cornell's liability for any damages caused by his dissociation. The assignment does not automatically terminate Equity Lending's legal existence, nor does it affect Cornell's liability for the debts of Equity Lending.

Fact Pattern 27-3 ​Bryn, Cornell, and Duke Are General Partners in Equity Lending

Fact Pattern 27-3 Bryn, Cornell, and Duke Are General Partners in Equity Lending