What is the effect of outstanding debt owed by the deceased partner on the continuation of the partnership?
General Chapter
Al-Mughni
Book of Partnership
Primary text
If the deceased partner had a debt attached to their estate, the heir cannot confirm the partnership until the debt is settled. If the heir pays the debt using funds other than the partnership assets, they may proceed with the partnership. However, if the debt is paid using the partnership assets, the partnership is nullified to the extent of the amount used for repayment.