Question

Suppose that Steve, one of the partners in a home improvement company, intends to dissolve the partnership. Before he can give notice of his intent, one of the other partners, Hala, makes a contract with some clients for a home office renovation. As a consequence, Steve will ______.

Answer 1

Answer:

still be liable for Hala's contract.

Explanation:

Any contract entered into by any of the partners, before the dissolution of a partnership business is deemed legal hence binding on the partners. This means that the partners will still be liable for the new contract in line with their partnership status.

Although, before a partnership business can be dissolved, at least one of partners must give a notice of intent. If in the process of giving the notice, another member enters in a new contract, such will be valid and partners will still be held liable because the business has still not been dissolved in the eye of the law.

Any contract entered into by any partner in a partnership business aftet dissution becomes illegal hence not binding on other members.