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Explain Personal Liability for Business Debts
Henry had loaned about $100,000 to a friend Mary to use in a business venture Mary was setting up with her associate Milly. They took the money as well as formed an LLC, however did not repay the loan. The loan agreement was verbal. The LLC stopped doing business. Henry says he does not overhaul about the business because this was a personal loan to Mary and Milly. Henry sued Mary and Milly and at trial beforehand a jury they admitted the debt, however said it was a debt of the LLC. Who must prevail and why?
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