Fact Pattern 3-3
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 3-3.Bryn, Cornell, and Duke decide to admit Giselle as a new partner in Equity Lending. Giselle's liability for partnership debts incurred before her admission is
A) limited to her capital contribution to the firm.
B) limited to her personal assets.
C) nothing.
D) unlimited.

Question

Fact Pattern 3-3
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 3-3.Bryn, Cornell, and Duke decide to admit Giselle as a new partner in Equity Lending. Giselle's liability for partnership debts incurred before her admission is
A) ​limited to her capital contribution to the firm.
B) ​limited to her personal assets.
C) ​nothing.
D) ​unlimited.

Quizplus · Accepted Answer

Giselle's liability for partnership debts incurred before her admission is limited to her capital contribution to the firm, as she is not yet a partner at that time.

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