Liabilities of Partners:
- The liabilities of the partners to the outsiders may be summed up as follows:
- Every partner is both jointly and severally liable to third parties for all the acts of the firm. This means that if the assets of the firm are not sufficient to meet the claims of third parties, partners have to satisfy the remaining claims out of their personal property.
- The firm is liable to the same extent as the partner for any loss or injury caused to third parties for the wrongful acts of a partner in the ordinary course of the business of the firm.
- If an individual partner or the firm receives money or other property from a third party in the normal course of business and the same is misapplied, the firm will be liable to make good the loss.
- Even a retiring partner is held liable for all such debts and liabilities of the firm which have been contracted before his retirement unless otherwise agreed upon.