Partnership - Liability of Partners to Third Parties

Question 1

What sort of torts are partners liable for?

Answer 1

General partnership is liable for each partner’s torts in the scope of the partnership business and for each partner’s authorized contracts.

Question 2

Are general partners liable for the partnerships debts?

Answer 2

Yes.

Question 3

What is an incoming partners liability for pre-existing debts?

Answer 3

Incoming partners are generally not liable for current debts, but any money paid into the partnership can be used by the partnership to satisfy prior debts.

Question 4

If a partner dissociates or withdraws from the partnership, are they liable for subsequent debts?

Answer 4

Partners retain liability on future debts until actual notice of their dissociation is given to creditors or until 90 days after filing a notice of dissociation with the state.

Question 5

What is general partnership liability by estoppel?

Answer 5

One who represents to a third party that a general partnership exists will be liable as if a general partnership exists.