Dissolution discharges existing liability of any partner.Group of answer choicesTrueFalse

Break Down the Problem

1. Identify whether the statement about dissolution and discharge of liability in partnership is true or false.
2. Analyze the legal implications of partnership dissolution in relation to the continuing liabilities of partners.

Relevant Concepts

3. Understand the legal concept of dissolution of partnership and how it affects the liability of partners. In general:
   • Dissolution of Partnership: The formal termination of the partnership agreement.
   • Liability in Partnerships: Partners are typically jointly liable for the debts of the partnership incurred while the partnership is active.

Analysis and Detail

4. When a partnership is dissolved, the existing liabilities do not automatically disappear; rather, the partners may still be personally liable for obligations incurred before the dissolution. This means that creditors can still pursue the partners for debts that existed at the time of dissolution, unless the agreement explicitly states otherwise.

Verify and Summarize

5. Based on the analysis, it's clear that dissolution does not discharge existing liabilities incurred during the partnership unless stated otherwise in the partnership agreement. Therefore, the correct answer is "False".

Final Answer

The statement "Dissolution discharges existing liability of any partner" is False.