Law · Partnership Law
Chitra retired from a partnership firm in March. Public notice of her retirement was not issued until May. What is the extent of Chitra's liability for partnership debts incurred in April (after her retirement but before public notification)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1She is liable only if she personally signed the debt agreement.
- 2Her liability is strictly capped at $50,000 due to the partnership agreement.
- 3She remains liable to creditors who knew she was a partner unless they were notified of her retirement.✓
- 4She has no liability as she had already retired.
Correct answer
She remains liable to creditors who knew she was a partner unless they were notified of her retirement.
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