Wednesday, July 30, 2008

Partnerships Question

A question similar to the one below appeared on my exam. How would you answer it?

Abby, Billy, and Carrie had a partnership. All three did a poor job of managing their own personal finances. Abby owed Red $25,000 for personal debts. Billy owed Green $50,000 for personal debts. Carrie owed White $75,000 for personal debts. All three have defaulted on the loans made to them by Red, Green, and White.

Red has obtained a judgment against Abby and is considering attaching an interest to Abby's partnership share.

Green has not brought any action against Billy.

White has accepted Carrie's share in the partnership in exchange for her debt.

a. Can Red attach a judgment to Abby's share in the partnership?

b. How can Green recover against Billy?

c. White wants to force the dissolution of the partnership. Can he do it?

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