Commentary

78.2 Liability of outgoing partner for obligations incurred after departure

BUSINESSES vol 4(2) start-up, sale and purchase
| Commentary

78.2 Liability of outgoing partner for obligations incurred after departure

| Commentary

78.2 Liability of outgoing partner for obligations incurred after departure

The default code in the Partnership Act 1890 provides protection for third parties dealing with a partnership after a change in its constitution. This is necessary, because the third party may not be aware of the fact that a particular partner has retired from the partnership and may enter into a transaction with the partnership relying on that partner’s continuing involvement. Consequently, where a person deals with a firm after a change in its constitution he is entitled to treat all apparent members of the old firm as still being

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