Asked by AMALIA PAGÁN on Mar 10, 2024
Verified
A novation is said to take place when continuing partners release a dissociated partner from liability but creditors do not release him.
Novation
The act of replacing an existing contract with a new one, where a new party takes over rights and obligations that were originally held by one of the initial parties.
- Acquire knowledge on a partner's rights and liabilities after dissociation.
Verified Answer
MG
Melissa GEORGESMar 10, 2024
Final Answer :
False
Explanation :
Novation occurs when (1)the continuing partners release a dissociated partner from liability on a partnership debt and (2)a partnership creditor releases the dissociated partner from liability on the same obligation.
Learning Objectives
- Acquire knowledge on a partner's rights and liabilities after dissociation.
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