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Simmons, Hoffman, and Murray were partners doing business under the firm name of Simmons & Co. The firm borrowed money from a bank and gave the bank the firm's note for the loan. In addition, each partner guaranteed the note individually. The firm became insolvent, and a receiver was appointed. The bank claims that it has a right to file its claim as a firm debt and also that it has a right to participate in the distribution of the assets of the individual partners before partnership creditors receive any payment from such assets.
a. Explain the principle involved in this case.
b. Is the bank correct?
Harry and Sally are friends who live in the same house. They have and understanding that if either of them buys a winning lottery ticket they will share the money. One day Sally buys a ticket which wins $100,000 in prize money. Sally insists that ..
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