Question

X, Y and Z are partners. Z gives notice of retirement to, the other partners but does not give public notice of it. W gives credit to the firm without having notice of the change. Can W sue Z if (a) Z is an active partner, (b) Z is a dormant partner (sleeping partner)?

Answer 1

Solution: Section to which the given problem relates: Section 32(3).
Decision and Reason:
Part (a) A retiring partner is liable for firms acts done after his retirement if no public notice is given.
Part
(b) A retiring partner is not liable to any third party who deals With the firm without knowing that he was a partner.