CAF-4 · Chapter 13 · Question 7 of 10
Abid, a partner in FS, signs a contract with a third party. One month later, Haris joins FS as a new partner. Is Haris liable to the third party for the contract Abid signed?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) No, an incoming partner is not liable for acts of the firm done before he became a partner.
Explanation
A person who is admitted as a partner into an existing firm does not thereby become liable to the creditors of the firm for anything done before he became a partner.
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