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A, B and C formed a partnership and have it registered with the SEC. They appointed C to be the Manager. In the course of operation, a customer X has became indebted with the partnership for goods delivered to him. However, X failed to pay his debt. C filed a suit for collection in his own name.

now the QUESTION is: Is C correc in doing so???? explain ur answer

1 Thought on please answer this situation?
  1. Reply
    August 31, 2011 at 11:18 pm

    If ever C will win in the suit, the collection would still be credited to the partnership especially if the other partners, A and B, have not received their share and the partnership debtor, X, has become insolvent. C is obliged to return the proceeds and share in the loss (if any)…there must be equity among the partners.

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