Participating in distribution of assets


Case Problem:

Simmons, Hoffman, and Murray were partners doing business under the firm name of Simmons & Co. The firm borrowed money from a bank and gave the bank the firm’s note for the loan. In addition, each partner guaranteed the note individually. The firm became insolvent, and a receiver was appointed. The bank claims that it has a right to file its claim as a firm debt and also that it has a right to participate in the distribution of the assets of the individual partners before partnership creditors receive any payment from such assets.

a. Explain the principle involved in this case.
b. Is the bank correct?

Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.

Request for Solution File

Ask an Expert for Answer!!
Business Law and Ethics: Participating in distribution of assets
Reference No:- TGS01972612

Expected delivery within 24 Hours