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Source Partnership Dissociation Official Sources Matched to this deck.

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After a business relationship breaks down, owners, managers, and outsiders dispute who is bound and who must pay. Two founders shared profits while telling a creditor that only one founder was responsible. The parties disagree about the legal effect of those facts. How is the court most likely to rule?

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Assume the doctrine applies because one element appears satisfied, even if the remaining elements are contested. Import a rule from a nearby issue instead of applying the rule triggered by these facts. Treat the formal label attached to the claim or defense as conclusive and disregard facts bearing on the rule's elements. The court should resolve the dispute by applying the operative rule to the material facts: The answer should identify the governing rule for Partnership Dissociation and apply it to the operative facts.

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