Karim retires from a trading partnership. He does not notify any of the firm's customers. One year later, a long-standing customer who had dealt with the firm when Karim was a partner supplies goods on credit and is not paid. What is Karim's position?

Correct answer: D) Karim may be liable for the debt, because existing customers must be given actual notice of his retirement

Explanation

A retiring partner remains liable for debts incurred before retirement, and may also be liable for later debts to persons who dealt with the firm before the change and had no notice of it. Under the Partnership Act 1890 existing customers should receive actual notice, while a notice in the London Gazette is effective against those who had not previously dealt with the firm. Because the customer received no notice, Karim may be liable.