Asked by AMALIA PAGÁN on Mar 10, 2024

verifed

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.
verifed

Verified Answer

MG
Melissa GEORGES

Mar 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.