Question

A retiring partner continues to be liable for obligations incurred after his retirement if:

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

Answer 1

The correct option is B He does not give public notice.

b'If a partner withdraws from a firm by dissolving it, then it is a dissolution and not retirement of a partner. The retirement of a partner from a firm does not dissolve it.

• The partnership is at will, by giving notice in writing to all the other partners of his intention to retire.

'