FINANCIAL RIGHTS AND OBLIGATIONS AND LIABILITY

Question 1

SHARING PROFITS AND LOSSES

Answer 1

Unless otherwise agreed, profits are shared equally among the partners (by number). Unless otherwise agreed, losses are shared in the same manner as profits.

Question 2

Liability of the Partnership in Tort

Answer 2

With respect to the partnership’s liability in tort, a partnership is liable for loss or injury caused to a person as a result of the tortious conduct of a partner (or an employee) acting in the ordinary course of
business of the partnership or with authority of the partnership

Question 3

Liability of the Partnership in Contract

Answer 3

With respect to the partnership’s liability in contract, a partnership is liable for all contracts entered into by a partner in the scope of partnership business or with actual or apparent authority of the partnership.