Andy and Abigail formed a partnership to design and sell costume jewelry at a re
ID: 448452 • Letter: A
Question
Andy and Abigail formed a partnership to design and sell costume jewelry at a retail store and on the Internet. They each contributed $3,000 to the partnership to get it going, and the partnership entered into a lease for 12 months at a local shopping center to house their retail operation. The lease was for $1,000 per month.
After three months of operation, it became evident that they would lose money if they continued the business, and they shut down the business. There are still nine months due on the lease, and the property owner is demanding that the partnership pay that $9,000 due. Andy has left town and can't be reached, and the property owner now demands that Abigail pay the $9,000 at the rate of $1,000 per month until the lease expires. Which of the following is most correct?
Abigail can be legally required to pay all $9,000.
Abigail can be legally required to pay $4,500, but no more.
Abigail cannot be required to pay anything. Whatever remains of the initial $6,000 that funded the partnership can be used to pay part of the bill, but the property owner has no recourse against Abigail or Andy after that.
Because the business ended operations, the landlord cannot require Andy and Abigail to pay any more rent if they vacate the property so that the owner can offer it for rent to others.
A.Abigail can be legally required to pay all $9,000.
B.Abigail can be legally required to pay $4,500, but no more.
C.Abigail cannot be required to pay anything. Whatever remains of the initial $6,000 that funded the partnership can be used to pay part of the bill, but the property owner has no recourse against Abigail or Andy after that.
D.Because the business ended operations, the landlord cannot require Andy and Abigail to pay any more rent if they vacate the property so that the owner can offer it for rent to others.
Explanation / Answer
Correct option is A - as per the question Abigail is liable to pay all 9000$ to the landowner as per the term and condition of lease and it doesn't matter you left due to losses or your partner left the town, irrespective of allgiven facts he has to give all 9000$.