Question

Dan and Lori Cole operated a Curves franchise exercise facility in Angola, Indiana, as a partnership. The firm leased commercial space from Flying Cat, LLC, for a renewable three-year term. The Coles renewed the lease for a second three-year term. Two years later, however, the Coles divorced and the partnership was dissolved. By the end of the second term, the Coles owed Flying Cat more than $21,000 on the lease. Without telling the landlord about the divorce, Lori signed another extension. More rent went unpaid. Flying Cat obtained a judgment in an Indiana state court against the partnership for almost $50,000. Can Dan be held liable? Why or why not?

Answer 1

Answer:

Yes, Dan will be held liable.

Explanation:

Partnership firm is the firm joined by people to earn profit. The number of partners or people will be agreed in the partnership act.

In the given situation, Den will be liable because in case of a partnership firm all the partners in the firm are equally responsible for any loss. They all have to deal with the obligations and the loss equally.

If Den and Lori need to form a partnership, they need to form an agreement. Also, in this partnership, both parties share both profits and losses equally.