|
Title: ABC partnership owns and operates a potato farm in Newark Post by: eliten55 on Jul 3, 2013 ABC partnership owns and operates a potato farm in Newark. A, B, and C are the partners/owners. C is having significant personal financial problems. Savoy Stores has obtained a judgment against C in the amount of $l2,341. Savoy knows that ABC is about to harvest its potatoes. When the ABC potatoes are being transported for processing, Savoy takes one-third of the potatoes to satisfy the debt. A and B object. C claims he is using the partnership property to satisfy a debt. Can C do this?
Anderson is in the process of forming a corporation in order to protect himself from liability in the operation of his construction/development business. The business is incorporated on November 1, 1986. However, Anderson was anxious to get started on a townhouse development. He signed contracts with subcontractors for the project during September and October. Discuss Anderson's liability before and after incorporation. Title: Re: ABC partnership owns and operates a potato farm in Newark Post by: irika21 on Jul 4, 2013 Answer:
No. Creditors can attach the partner's interest but not the partnership property. Savoy could attach C's profits from the potatoes but not the potatoes themselves. Anderson is personally liable on the contracts before and after incorporation. He can be relieved if the incorporation, the subs, and he enter into a novation. He will be secondarily liable if the corporation ratifies the contract. |