Personal liability for business debts henry had loaned


Personal Liability for Business Debts Henry had loaned about $100,000 to a friend, Mary, to use in a business venture Mary was setting up with her associate, Milly. They took the money and formed an LLC, but did not repay the loan. The loan agreement was oral. The LLC ceased doing business. Henry says he doesn't care about the business because this was a personal loan to Mary and Milly. Henry sued Mary and Milly and at trial before a jury, they admitted the debt, but said it was a debt of the LLC. Who should prevail and why? 

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Strategic Management: Personal liability for business debts henry had loaned
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