ACCA · Question 11 · The formation and constitution of business organisations
Section A
Three individuals form a traditional general partnership to run a veterinary clinic. One partner, David, retires. The remaining two partners continue the business. Six months later, a supplier sues the partnership for an unpaid invoice relating to goods ordered while David was still a partner. What is David's liability regarding this debt?
Answer options:
David has no liability because he is no longer a partner.
David remains jointly liable for the debt because it was incurred before his retirement.
David is only liable if the remaining partners become insolvent.
David is severally liable for one-third of the debt.
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