Final answer:
True. A person admitted as a partner into an existing partnership is liable for obligations of the partnership contracted before their admission.
Step-by-step explanation:
True. A person admitted as a partner into an existing partnership is liable for obligations of the partnership contracted before their admission.
When a new partner is admitted into a partnership, they become a part of the existing partnership and assume both the rights and responsibilities of the partnership, including any obligations incurred prior to their admission. This means that they are legally responsible for the debts and obligations of the partnership that were contracted before they became a partner.
For example, if a partnership had accumulated debts prior to admitting a new partner, the new partner would also be liable for those debts. If the partnership were to default on those debts, all partners, including the new partner, could be held personally liable for repayment.