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MO, CURLY and LARRY were partners in a partnership, and they equally shared partnership profits. The partnership has dissolved due to MOs death. The partnership has $90,000 cash. The partnership owes $20,000 to JOE, an outside creditor, and it owes LARRY $10,000 for an advance he made to the partnership. MO contributed $15,000 to the partnership, CURLY contributed $10,000, and LARRY contributed $5,000. The partnership agreement is silent regarding the partners rights upon the death of a partner.
a. Can CURLY and LARRY indefinitely continue the partnership business or must they wind up the partnership’s business?
b. In general, who is entitled to wind up the affairs of a partnership? Here?
c. If the partnership in this case is wound up, to whom and in what order will the partnership assets be distributed?
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