Asked by Colin Stubblefield on May 10, 2024
Verified
________ may be proved by a creditor's knowledge of a partner's withdrawal and his continued extension of credit to the partnership.
A) Implied novation
B) Actual novation
C) Apparent novation
D) Express novation
Implied Novation
A legal concept where a new contract is assumed to replace an old one due to the actions or situations of the parties involved, without this being explicitly stated.
Actual Novation
The replacement of an existing obligation with a new one, extinguishing the original obligation and creating a new contract with different terms.
- Discuss the ramifications of a partner exiting or a new partner joining on the liabilities and operational processes within a partnership.
Verified Answer
WS
Waqar SaleemMay 14, 2024
Final Answer :
A
Explanation :
Implied novation may be proved by a creditor's knowledge of a partner's withdrawal and his continued extension of credit to the partnership.
Learning Objectives
- Discuss the ramifications of a partner exiting or a new partner joining on the liabilities and operational processes within a partnership.
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