In a partnership between 2 companies (PQR pyt. ltd. and DRS pyt. ltd.), a subsidiary company is formed which takes a debt from outsider supposedly JKL Finance. Now, one company of the partnership supposedly DRS Company gave a guarantee on that loan. But, later on, JKL Finance finds out that DRS Company doesn't own any assets. So, can JKL Finance compel PQR pyt. Ltd. to give a guarantee on the debt given to the subsidiary company?

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In a partnership between two companies PQR Pty Ltd and DRS Pty Ltd where a subsidiary company is for... View the full answer