Flashcards in Liability of Partners Deck (3)
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.
Liability of Incoming Partner
Is not personally liable for obligations of partnership before they became a partner, except to extent of capital contribution.