Who is liable to the suppliers discuss the different


Pat McGowan, Val Somers, and Brent Robertson were general partners of Vermont Place, a limited partnership formed on January 20, 1984, for the purpose of constructing duplexes on an undeveloped tract of land in Fort Smith, Arkansas. The general partners appointed McGowan and his company, Advance Development Corporation, to develop the project, including contracting with materials, people, mechanics, and other suppliers. None of the limited partners took part in the management or control of the partnership. On September 3, 1984, Somers and Robertson discovered that McGowan had not been paying the suppliers. They removed McGowan from the partnership and took over the project. The suppliers sued the partnership to recover the money owed to them. The partnership assets were not sufficient to pay all their claims.

Who is liable to the suppliers? Discuss the different aspects of the partnership involved.

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Financial Management: Who is liable to the suppliers discuss the different
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