Question

A retiring partner continues to be liable for obligations incurred after his retirement _______________________.

• A. If unpaid amount is transferred to his loan account.
• B. If he does not give a public notice of his retirement.
• C. If he starts a similar business elsewhere.
• D. None of the above

Answer 1

Answer: (B)

If he does not give a public notice of his retirement.

A retired partner continues to be liable to the third party for acts of the firm till such time that he or other members of the firm give public notice of his retirement. However, if the third party deals with the firm without knowing that he/she was a partner in the firm, then he/she will not be liable towards the third party.