For the Last 14 Months,Greer Has Been a Junior Partner

For the last 14 months,Greer has been a junior partner in a Vancouver law firm.Until now he was receiving a monthly salary of $5000.Senior partners have just decided to stop all salaries because of a pending lawsuit against the firm.It was determined the firm would not make profits for at least the next eight months.Is the firm obliged to continue Greer's salary?

A) No,it is not,since partners can only be paid out of profits.
B) Yes,it is,since salaries are the first call on the firm's profits.
C) No,it is not,since the firm cannot claim the doctrine of frustration.
D) Yes,it is,since salaries are an expense that comes off before profits are figured.
E) Yes,it is,since Greer has a wife and kids who are dependant on the salary for basic living expenses.

Correct Answer:

Verified

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