Syllabus D: The formation and constitution of business organisations — ACCA Practice Question 11

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Identify the statutory requirements for a partner to sever their apparent authority upon retirement.

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B.Give actual notice to existing customers and public notice (e.g., in the London Gazette) to new customers.✓ Correct

Section 36 of the Partnership Act 1890 states that a retiring partner must give actual notice to those who have previously dealt with the firm, and constructive notice (e.g., an advertisement in the London Gazette) to those who have not, to avoid being bound by future acts of the firm under apparent authority.

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Assuming that simply leaving the business or telling the other partners is sufficient to end liability to third parties.

In a general partnership, a partner decides to retire. Which of the following actions must the retiring partner take to avoid liability for future debts incurred by the partnership?

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Practice the full ACCA LW — Corporate and Business Law Practice Exam 3

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