- 6 Marks
BL – Nov 2019 – L1 – SB – Q1b – Partnership Law
Advising on the legal issues of partner liability in a firm suffering loss, and a partner's move for dissolution.
Question
b. Wonderland Enterprises is a firm of four partners, trading in motor vehicle batteries. Mr. Bright was appointed the Managing Partner, while two other partners were appointed Finance Manager and Sales Manager, respectively. The remaining partner, Mr. Blake, did not take part in the firm’s management, but he contributed N2 million to the business just as each of the other partners did.
The firm recorded heavy trading loss during the year which resulted in a debt of N10 million. The three partners in the firm’s management insist that all the four partners must pay the debt equally. Mr. Blake is displeased and has served a notice on the other partners for dissolution of the partnership.
Required:
Advise the partners, stating the legal issues in the matter.
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