Liability to Third Parties Flashcards
1
Q
General Partners’ Liability to Third Parties
A
Personally liable for all partnership debts, which includes torts committed by a partner if done:
+ in the ordinary course of business, OR
+ with authority from the partnership.
General partners are JOINTLY AND SEVERALLY liable.
Partner may sue partners who didn’t pay their pro rata share for contribution.
Applies to all general partners in a GP and an LP, but not an LLP.
2
Q
Limited Partners’ Liability to Third Parties
A
Not personally liable (except partner’s capital contribution) for septs of the LP, even if the limited partner participated in the management.
