Question
A partnership suffered losses in the first year of its operation. A, a capitalist partner, cannot contribute an additional share to the capital because of
A partnership suffered losses in the first year of its operation. A, a capitalist partner, cannot contribute an additional share to the capital because of insolvency. Can A be obliged to sell his interest to the other partners on the ground of such refusal?*
2 points
a. Yes, provided that A is paid the value of his interest.
b. Yes, A's refusal to contribute additional share reflects his lack of interest in the continuance of the partnership.
c. No, because his refusal is justifiable.
d. No, because there is actually no imminent loss of the business.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started