McCoy and Gugelman formed a partnership to operate an antiques business. The partnership borrowed money from Security

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McCoy and Gugelman formed a partnership to operate an antiques business. The partnership borrowed money from Security State Bank. One of the partners signed a promissory note to the bank on behalf of the partnership. When the partnership defaulted on the note, the bank sued the partners individually rather than suing the partnership. The partners argued that before they could be sued, the bank first had to sue the partnership and get a judgment against it. Was this claim correct?
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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Business Law Principles and Practices

ISBN: 978-1133586562

9th edition

Authors: Arnold J. Goldman, William D. Sigismond

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