Question

MNO was a partnership which contracted for and performed all types of painting jobs. Before the partnership was dissolved, MNO had entered into a contract under which MNO was to paint every room in the state capitol building. At the time of the partnership dissolution, MNO had not yet performed the work called for by such contract. If the partners involved in the winding up elect to perform the contract, they:

Answer 1

Answer: a. have the authority to enter into new contracts with subcontractors, material suppliers, and workers

Step-by-step explanation:

If the partners elect to finish the job, they will legally have the authority to enter into new contracts with the necessary outside contractors needed to get the job done.

This is because the job was agreed to with the partners and with the dissolution of the partnership, contracts with these contractors were cancelled. Since the partners however want to pursue the job, they are free to do so but will need to get new contracts to replace the old cancelled ones.