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Hello, this is Jim and welcome to JustAnswer. I will be the lawyer working with you today.Sorry to hear of the issue. I will set out my written answer shortly.
It depends what the partnership agreement says, if there is one. If not, there is still a partnership which is implied, under the Partnership Act 1890. That means if one partner resigns (with written notice), the partnership is dissolves - so your scenario would mean that B and C would then form a new partnership and a new entity so to speak. So yes, legal responsibility would stop at the date partner A retires (the date of their letter for example) as that date would then dissolve the partnership. Partner B can continue to run the business - they would revert to a sole trader status, until they agree to partner up with the new person - in which case the date of that new agreement is the date the new partnership forms. Partner B may still be liable for any business debts, but not Partner A as they retired and if there is no written partnership agreement, partner B would continue to be liable (and when C joins, C is also then liable). As both are liable for 50% of the costs and they also take out 50% of the profit share too.
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