Multiple choice

A, B, and C enter into a partnership agreement under which C is not liable for the losses. D filed a suit against A, B, and C. Examine the position of C.

  1. C is liable to D only.

  2. C is liable to D jointly with A and B.

  3. C is not liable to D.

  4. C is not liable to D jointly with A and B.
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B Correct answer
Explanation

Option (2) is correct: C is not liable for losses, but if any person sues the partnership firm, then all the partners will be liable jointly.

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