Mark and Stacy, brother and sister, were partners who had irreconcilable differe

Question

Mark and Stacy, brother and sister, were partners who had irreconcilable differences. In a suit to dissolve the partnership, a referee was appointed. The referee, to dispose of the assets, asked each partner to submit a bid. The brother submitted a bid for $65,000, but the sister did not bid. She now objects to the sale to her brother. The parties had stipulated that one of them could continue the business. On dissolution, is it permissible for the court to order a sale of partnership property to one of the partners for the purpose of continuing the business? Explain.

Explanation / Answer

Mark and Stacy, brother and Sister were partners dissolving their partnership. To dissolve the partnership, Referee appointed who asked each one to submit the bid. The brother submitted for $65000 whereas sister has refused to bid and both partners decided that one of them will continue the business. Yes, it is permissible for the court to order the sale of partnership property to the partner who is going to continue the business but only after paying or fulfilling all the obligations of the leaving partner like debts, division of assets and profits,etc. Whatever is mentioned in the buy/sell agreement of partnership should be fulfilled by paying the other partner debt and assets in the company. All legal, accountable and client base details should be properly addressed to avoid the misunderstanding in the new continuing business venture.

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.