First Principles of Business Law
Business organisations in Australia

5. Partnerships

Question 16. Is it possible for a partner to have limited liability?

 

 

 

Suppose Ronnie wants to enter into a partnership with Edward, but does not want to be jointly liable with Edward for the debts and other liabilities incurred in the course of the business. Is it possible to have a partnership in which one or more of the partners has a limited liability for such obligations?  Read the statements below and select the best one.

(a) It is possible, in a limited partnership, for some (but not all) of the partners to avoid an unlimited personal liability for partnership debts.

(b) All partners in a partnership must have the same degree of liability. A so-called 'limited partnership' only means that the partners cannot enter into some types of legal transaction.

 

 

 

 

 

 

 

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