8. Liability Sharing Flashcards
Rules on sharing of partnership liabilities to third persons as to nature of liability
- Pro rata
- Subsidiary
The liability of the partnership shall be equally divided among partners.
Pro rata
each partner shall be liable to their separate asset when the partnership has been exhausted
Subsidiary
Rules on sharing of partnership liabilities to third persons as to partners liable
All GENERAL PARTNERS are liable whether capital or industrial partner
Exempted from pro rata and subsidiary
- Industrial partner
- Whom the partnership agreed to be exempted
Whose partners liable?
All general partner whether capitalist or industrial partner
Liability of a newly-admitted partner for the obligation of the partnership
- Obligations existing at the time of his admission
- Obligation incurred after his admission
Liability of partnership to third persons for acts of partners when partnership is bound
- If the partner is authorized to act for the partnership, the partnership is bound whether or not the act is for apparently carrying on in the usual way the business of the partnership
- If the partner is not authorized, the partnership is bound if the act is for carrying on in the usual way the business of the partnership and the third person has no knowledge of the partner’s lack of authority
Liability of partnership to third persons for acts of partners when partnership is not bound
- If the partner is not authorized, the partnership is not bound if the act is for carrying on in the usual way the business of the partnership and the third person has knowledge of the partner’s lack of authority
- When the partner is not authorized to act for the partnership and the act is not apparently carrying on in the usual way the business of the partnership. It is immaterial whether the third person has no knowledge.
