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Flashcards in Liability of Partners Deck (3)
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1

Type of Liability

Partners are liable for all contracts entered into by a partner w/i the scope of the partnership.

Partners are also liable for all torts committed by any partner or employee w/i ordinary course of business.

Each partner is personally and individually liable for the entire amount of partnership obligations.

2

Liability of Incoming Partner

Is not personally liable for obligations of partnership before they became a partner, except to extent of capital contribution.

3

Liability of Outgoing Partner

Remains liable on obligations arising while he was a partner. Liability continues until 90 days after he has filed a notice of dissociation with Dept of State.