LIABILITY OF PARTNERS

LIABILITY OF PARTNERS

1. S9PA1890

   • All partners are liable jointly and severally for the debts of the partnership
     • Liability for debts incurred whilst a partner continues after retirement or death

2. S10PA1890

   • All partners are jointly and severally liable for wrongful acts of any partner acting in the ordinary course of business

3. S11PA1890

   • Misapplication of money or property received for or in custody of the firm

4. S13PA1890

   • Improper employment of trust property for partnership purposes

5. S14PA1890

   • Holding out
     • Making a representation that they are a partner when they are not
       • Representation may be made by 'partner' or firm
         • If the 'partner doesn't know he is being represented as a partner then he is not liable
     • Retiring partners must give notice of retirement s36
       • advertisement in London Gazette gives general notice s36(2)
       • Direct notice must be given to existing clients s36(1)

6. Partners current or retired cannot exclude liability

   • Retiring partner may enter into a Novation Agreement
     • A Novation Agreement is between
       • Creditor
       • Partners existing at time of contract
       • Newly constituted partnership
   • Retiring partner may enter into an indemnity agreement with the newly constituted partnership in respect of any outstanding debts