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A, B, C & D have formed a general partnership. In October, 2021, D announces that he wishes to leave the partnership. There is
A, B, C & D have formed a general partnership. In October, 2021, D announces that he wishes to leave the partnership. There is in place a partnership agreement that states each partner is liable for only 1/4 of the total debt of the business. When D leaves, there is $100,000 owed to Creditor. Shortly after D leaves, A, B, & C vote to allow E to buy-in to the partnership for $50,000. which E accepts. Think carefully! If the partnership fails to pay Creditor in a timely manner, how much can Creditor sue D individually for, if anything?
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