Question
John Anderson and Carl Bailey owned an auto repair partnership. After much negotiation, Donald Hicks accepted an offer to join the partnership. Donald's capital contribution
John Anderson and Carl Bailey owned an auto repair partnership. After much negotiation, Donald Hicks accepted an offer to join the partnership. Donald's capital contribution to the firm was the storage facility the partners planned on using to store cars.
The partnership was in financial trouble before Donald joined, and a creditor sued and won a judgment against the partnership in the amount of $100,000. This was for debts that existed before Donald became a partner. The creditor wanted to take the storage facility and Donald's home. What would be the result? Discuss.
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