Explain the Legal Relationship

Question

Explain the Legal Relationship between Partners and its liability?

Answer 1

Partners have both obligations and rights pursuant to either statutes and/or a partnership agreement.

A partner is personally liable for:

1. Debts and obligations of the partnership incurred while he or she is a partner;

2. Negligence and other torts perpetrated by any of the partners acting in the ordinary course of the partnership business; and

3. Misapplication of trust funds placed in the care of the partnership.