Liability of incoming partners and death of a partner, Business Law and Ethics

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Liability of Incoming Partners and Death of a Partner

Liability of Incoming Partners

However Unless a new partner makes a individual agreement to the effect such he will take over the liability in respect of such firm's debts on the time of his joining the firm, then he cannot be held liable for like debts.  In the existence of that a special agreement such the new partner can be held liable no more than in respect of debts incurred subsequent to he became a partner in such firm: by Section 21(1).

Death of a Partner

Furthermore on the death of a partner, whether the partnership is terminated through the event, the private property of such the deceased partner is available  that  the creditors of the firm.  Very first is, the claims of the private creditors must be met not in of the private property.  However any surplus remaining goes for satisfy the debts of the partnership that remain unpaid.


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