Case Problem Analysis: Winding Up

Dwayne Short, Serkan Gonzaga, and Danny Baker formed a general partnership named "Relo Now," which was a trucking business in Texas. The partners agreed to share equally onethird of the profits and losses of the partnership. Short was the only partner working in the office. In order to conduct partnership business, Short entered into an office equipment lease agreement with IKON Capital Corporation $($IKON$)$ for a telephone system, fax machine and photocopier for $$577\mathrm{.}91$ a month. Soon thereafter, the company for which the partnership was acting as a representative had changed its system, thereby preventing the partnership from being capable of operating its business. Short was unable to pay IKON the lease payment, among other debts.

IKON sued Short individually and d$/$b$/$a Relo Now $($d$/$b$/$a is an abbreviation for "doing business as$"),$ claiming a total exceeding $$16,000$ which included past due payments and accelerated future lease payments. Short negotiated a settlement with IKON for $$9,000.$ Short notified Gonzaga and Baker of the settlement agreement and said they were jointly and severally liable for the $$9,000$ that extinguished the partnership's debt to IKON, plus attorney's fees. Baker filed bankruptcy, and his debts were discharged in bankruptcy