Agency and Partnership Liability Flashcards
1
Q
A Partnership’s Liability (General Definition)
A
A partnership is liable for the acts and omissions of any partner acting in the ordinary course of the partnership business or with the authority of the other partners, to the same extent that the acting partner is liable.
2
Q
Partners’ Liability
A
In a general partnership, all partners are jointly and severally liable for all the obligations of the partnership. In a limited partnership or a limited liability partnership, partners’ liability is limited to their capital accounts in the partnership.
3
Q
Partners Binding the Partnership
A
To the extent a third party reasonably believes a partner is acting for the partnership, that partner will have the apparent authority to bind the partnership.
