Liability of Partners

Question 1

Who is liable for debts and obligations of partnership?

Answer 1

Each GP.

Question 2

Who is liable for partner’s torts?

Answer 2

Each GP- this is ENORMOUS liability

Question 3

Are new partners liable for prior debts and obligations of a partnership?

Answer 3

No, however, their capital paid in is partnership money and may be used to satisfy debts and obligations

Question 4

Are withdrawing partners liable for future debts?

Answer 4

YES until notice of dissociating partner is given to creditors or until 90 days after filing notice of dissociation.

Question 5

What is estoppel in partnerships?

Answer 5

Allows for people who represented themselves as partners to third parties to be liable as if they were partners.

“Under estoppel, X represented themselves as a partner….”