Question

Which of the following is not a condition for the application of Garner vs. Murray case decision in the Dissolution of Partnership Firm?

• A. There must be more than two partners in the firm
• B. There are at least two solvent partners with credit balances in their Capital Accounts on the date of dissolution
• C. At least one partner is insolvent
• D. There is an agreement among the partners to share insolvency loss in a particular ratio

Hint:

Always check the legal conditions carefully for partnership dissolution cases.

Answer 1

The Correct Option is A

Garner v. Murray applies if there are at least two solvent partners and at least one insolvent partner; the total number of partners exceeding two is not a requirement.