What is the liability of SUPER Enterprises to its creditors after Rances' resignation?

The correct answer highlights that SUPER Enterprises remains liable to Masterpaint only after Rances' resignation, which impacts the firm's obligations towards its creditors. In the context of partnership law, when a partner resigns from the business, the partnership may continue to exist and operate, but the liability for existing obligations depends on the nature of the partnership and specific agreements in place.

A partnership typically maintains liability for debts incurred while a partner was involved, contingent upon the nature of the transactions and the timing of those debts. If Masterpaint extended credit to SUPER Enterprises while Rances was still a partner and that debt is due, the partnership remains liable for that debt even after Rances resigns. Therefore, Masterpaint can seek payment from SUPER Enterprises as they have an outstanding obligation that arose during Rances' tenure.

On the other hand, if Supremeparts was not a creditor during Rances' partnership or if any debts owed to them arose after his resignation, then SUPER Enterprises would not be liable to them. This nuance is key, as it explains why SUPER Enterprises remains liable to Masterpaint, recognizing the timing and nature of the underlying debts.

Thus, the liability of SUPER Enterprises to its creditors is specifically tied to the existing obligations at the time of