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Rani is one of four partners in an Unlimited/General Partnership registered under the name of Jamali & co. He has contributed in both money and

Rani is one of four partners in an Unlimited/General Partnership registered under the name of Jamali & co. He has contributed in both money and skills while the other three have invested in money only. Jana, Rani's cousin, who is also one of the partners in this company started to get jealous of the success Rani was making and decide to find a way to "kick him out" of the company. She files a lawsuit requesting the court to remove him as partner and manager on the basis that his contribution is not valid for two reasons; on one hand contribution in skills is not allowed in such companies and on the other hand a partner cannot make different types of contributions in one company.

1. Is Rani's contribution invalid as Jana claims?

One of the other two partners passes away leaving two kids behind. The remaining partners agree on decided to continue the partnership among themselves and having the kids join as partners. 2. What would be the status of each of the 5 partners (given their level of liability) ?

A couple of years later, Jamali & co. starts receiving notices from its creditors who were demanding that the company honors its debts at once. The company states that it is going through some rough patches and that it will not be able to cover such amounts for the time being. This is when the creditors file lawsuits in hope to recover the money back through the garnishment of the companies assets. Unfortunately one of the creditors who was late to take action was informed that the company's assets were all garnished. But he also learnt that Jana owns many properties in Byblos, and this is why he decides to file the lawsuit against Jana instead. Jana claims that she is not responsible for the company's debts. 3. Is the creditor allowed to take such action? Explain.

4. Can Jana refuse to cover this debt? Explain.

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