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Flashcards in Liability of Partners Deck (3)
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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.


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.