Reference no: EM132347388
Maria and Jesus are long-time friends from high school. They form a general partnership to build townhouses in new subdivisions. Everything goes pretty well for the first couple of years, and they each make a good living. Then, Maria goes to Las Vegas for a week, and loses ALL of her property gambling at the casinos. Determined to "recoup her losses" at the roulette wheel, she withdraws all the cash from the partnership bank accounts (including the employee payroll for the next week) and goes back to Vegas. Unfortunately, she loses worse than she did before - all of the partnership bank account money is gone. In a fit of despair, Maria gets drunk and drives the partnership pickup-truck off a cliff, and dies. The county coroner rules that it was death by suicide. Because she died by suicide, the life insurance company refuses to pay on her $250,000 life policy. As Maria had already lost all her other property gambling, there is nothing in Maria's estate to pay her remaining debts.
a. as general partners, Jesus will be legally responsible for all debts of the company - even those created by Maria.
b. Jesus will only be responsible for paying debts of the company that he personally created on behalf of the company.
c. Jesus will only be responsible for paying the payroll to the company employees. All the other business debts will just "go away" because of Maria's death.
d. Jesus can always file suit against Maria's estate, to get back her 50% of all the liabilities that he has to pay.