A, B and C are partners in a firm. C retires and X is admitted as a new partner. The firm did not give a public notice of the change, but continued its business in its old firm name. Z, a customer of the firm, deals with the firm after the change and the firm becomes indebted to him. In that case,

Option (1) is incorrect: Z cannot sue A, B, C and X jointly. Option (2) is incorrect: Z can sue either A, B and C or A, B and X. Option (3) is correct:  Every partner is liable jointly with all the other partners and also severally, for all acts of the firm done, while he is a partner. Z can sue either A, B and C or A, B and X. Option (4) is incorrect: Z cannot sue A and B only.