Parham-Woodman Medical Associates, a general partnership, entered into a loan agreement with Citizens Bank to fund construction
Question:
Parham-Woodman Medical Associates, a general partnership, entered into a loan agreement with Citizens Bank to fund construction of a medical office for the partnership. Ante and King were the partners at the time the loan was extended. As contemplated by the loan agreement, the bank made advances to the partnership from time to time. Nada and Joseph Tas later became partners as well. After their admission to the partnership, the bank made several more advances. After the building was completed, the partnership defaulted on the loan, and Ante and King went into bankruptcy, thereby extinguishing their personal liability. The bank then sued Nada and Joseph, claiming they were personally liable for more than $500,000 in advances made after their admission into the partnership. Are Nada and Joseph personally liable for those advances?
PartnershipA 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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Law for Business
ISBN: 978-1259722325
13th edition
Authors: A. James Barnes, Terry M. Dworkin, Eric L. Richards