Question
Jim Naylor, Peter Ebden, & David Waldon are partners trading under the name Naylor, Ebden, & Waldon. Michael Mahon supplies them with goods on an
Jim Naylor, Peter Ebden, & David Waldon are partners trading under the name Naylor, Ebden, & Waldon. Michael Mahon supplies them with goods on an ongoing basis. David retires from the partnership, sending a letter to all the firms trade creditors informing them that he is retiring. An employee of Michael Mahon throws the letter from David Waldon away believing it is advertising, and Michael is unaware David that has retired. The firm continues to trade under the name Naylor, Ebden, & Waldon, and Michael Mahon continues to grant credit to Jim Naylor and Peter Ebden, believing David Waldon remains a partner. Jim Naylor and Peter Ebden are bankrupted.
Required:
Advise Michael Mahon whether he can force David Waldon to pay the unpaid trade debts of Naylor, Ebden, & Waldon, referring to relevant statutory provisions.
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