When is a partnership not held accountable for a partner’s actions after dissolution?

Prepare for the Partnership Law Exam. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

In the context of partnership law, a partnership typically remains accountable for a partner's actions even after dissolution when those actions are related to the partnership's affairs. This includes actions taken to complete prior transactions and those necessary for winding up the partnership's affairs, ensuring that all obligations are addressed.

However, when a partner engages in new transactions that the other partners have no prior knowledge of, the partnership is not held accountable for those actions. This is because the new transactions fall outside the scope of the partnership's former business and are not tied to the winding up process or the completion of existing obligations. The rationale is that without the partnership’s consent or awareness, new actions do not correlate with the partnership's prior business dealings, thus providing an element of separation between those actions and the partnership's liabilities.

Therefore, the scenario where the partnership is not held accountable involves the completion of actions that do not relate directly to its previous dealings, which coincides with the essence of option C. This distinction is essential in determining the limits of a partnership's liability following dissolution.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy