First Principles of Business Law
Business organisations in Australia

5. Partnerships

Question 9. Who is liable for legal obligations incurred by a partnership in the course of business?

 

 

 

Read the statements below and select the best one.

(a) Even though creditors of a partnership know they are dealing with a firm, it is the partners themselves who are liable for the debts and other legal obligations incurred in the name of the firm.

(b) Creditors of a partnership know they are dealing with a firm, and accordingly they only have the right to enforce their rights against the firm, to the extent that there are sufficient assets available.

 

 

 

 

 

 

 

  
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