A, B and C formed a partnership for the purpose of contracting with the Philippine Government in the construction of one of its bridges. On June 30, 2020, after completion of the project, the bridge was turned over by the partners to the Government. On August 30, 2020, D, a supplier of materials used in the project sued A for collection of the indebtedness to him. A moved to dismiss the complaint against him on the ground that it was the ABC partnership that is liable for the debt. D replied that ABC partnership was dissolved upon completion of the project for which purpose the partnership was formed. Will you dismiss the complaint against A, if you were the judge? State your reason.
A, B and C formed a partnership for the purpose of contracting with the Philippine Government in the construction of one of its bridges. On June 30, 2020, after completion of the project, the bridge was turned over by the partners to the Government. On August 30, 2020, D, a supplier of materials used in the project sued A for collection of the indebtedness to him. A moved to dismiss the complaint against him on the ground that it was the ABC partnership that is liable for the debt. D replied that ABC partnership was dissolved upon completion of the project for which purpose the partnership was formed. Will you dismiss the complaint against A, if you were the judge? State your reason.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- A, B and C formed a
partnership for the purpose of contracting with the Philippine Government in the construction of one of its bridges. On June 30, 2020, after completion of the project, the bridge was turned over by the partners to the Government. On August 30, 2020, D, a supplier of materials used in the project sued A for collection of the indebtedness to him. A moved to dismiss the complaint against him on the ground that it was the ABC partnership that is liable for the debt. D replied that ABC partnership was dissolved upon completion of the project for which purpose the partnership was formed. Will you dismiss the complaint against A, if you were the judge? State your reason.
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