Winding up dan and lori cole operated a curves franchise exercise facility in angola, indiana, as a partnership. the firm leased commercial space from flying cat, llc, for a renewable three-year term. the coles renewed the lease for a second three-year term. however, two years later the coles divorced and the partnership was dissolved. by the end of the second term, the coles owed flying cat more than $21,000 on the lease. without telling the landlord about the divorce, lori signed another extension. more rent went unpaid. flying cat obtained a judgment in an indiana state court against the partnership for almost $50,000. can dan be held liable? why or why not?

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Business

Rogelio Ware

29 July, 13:13

Winding up dan and lori cole operated a curves franchise exercise facility in angola, indiana, as a partnership. the firm leased commercial space from flying cat, llc, for a renewable three-year term. the coles renewed the lease for a second three-year term. however, two years later the coles divorced and the partnership was dissolved. by the end of the second term, the coles owed flying cat more than $21,000 on the lease. without telling the landlord about the divorce, lori signed another extension. more rent went unpaid. flying cat obtained a judgment in an indiana state court against the partnership for almost $50,000. can dan be held liable? why or why not?

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Azul · Answer 1

Dan can be held liable for the more than $21,000 owed on the second lease term. The partnership was active at the time that second term lease was signed. However, Dan is not liable for the 3rd extension of the lease, as the partnership was dissolved and the 3rd extension was entered after that dissolution. Lori is the only one Liable for the remainder of the debt that was obtained after the dissolution of the partnership, totaling approximately $29,000.