Mickey Mouse and Dory, as partners, operated a retail store (selling Disney stuf
ID: 343077 • Letter: M
Question
Mickey Mouse and Dory, as partners, operated a retail store (selling Disney stuff, of course). After a few years, they agreed to end the partnership. Mickey agreed to oversee the going-out-of-business sale. Dory agreed to deal with matters not directly related to the hands-on operation of running the store. Dory received notice that the store's liability policy would expire on July 1. She decided not to renew the policy and let it lapse. The going-out-of-business sale would not be completed until August 1. In July, a customer slipped and fell in the store. When Mickey learned that Dory had allowed the liability policy to lapse, he was very upset and claimed he should not be liable for the customer's injury. Is Mickey liable to the customer? Explain.
Explanation / Answer
In this specific case the contract is still present between mickey Mouse and Dory. Liability policy is expired which directly effects both of the partners as the partnership is still intact. In this specific case if the policy is not renewed then it is responsibility of both of the partners in the partnership as they have divided the work accordingly but they are bound to the same rules of partnership.Hence we can say that Mickey is also liable to the customer.