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I)Effects of lunacy in operation of a partnership account.
Death, bankruptcy or mental incapacity of any one Partners cancels the mandate
irrespective of whether the account is in debit or credit. Therefore incase that the partners had a debt or Tracy had a debt that she borrowed under partnership name with the consent of the other partners ,the mandate that all the partners are held liable for the debt cancels immediately when they learns that Tracy has a mental incapacity and her liability as a partner is withdrawn thus the remaining partners are held liable for her debt.
II)Jane's retirement
Where no fixed term has been agreed upon for the duration of the partnership, any partner may determine the partnership at any time on giving reasonable notice of his intention to do so to all the other partners. Where the partnership has originally been constituted by deed, a notice in writing, signed by the partner giving it, shall be sufficient for this purpose. Subject to any agreement between the parties, the amount due from surviving or continuing partners to an outgoing partner or the representatives of a deceased partner in respect of the outgoing or deceased partner’s share is a debt accruing at the date of the dissolution or death. In the memorandum of association, the duties and rights of partners are listed thus losses and profits are shared equally among the partners. Also, incase of bank debt, Jane will still be liable for the debt as per the rights of partners until it is
fully settled.
NatalieR answered the question on February 15, 2022 at 06:32
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