Partnership | Commerce - Liabilities of Partner | 11th Commerce : Chapter 5 : Hindu Undivided Family and Partnership

Chapter: 11th Commerce : Chapter 5 : Hindu Undivided Family and Partnership

Liabilities of Partner

Every partner is jointly and severally liable for all acts of the firm.

Liabilities of Partner

Joint and Several liabilities

Every partner is jointly and severally liable for all acts of the firm. It means that in case the assets are inadequate for meeting the claims of creditors, even their personal properties should be made available. The creditors can recover their claims from all the partners.

Liable for any loss to third party

The firm is liable for any loss caused to a third party because of a wrongful act done in the ordinary course of business. It means that every partner is liable.

Liability to third party to make good the loss

Where a partner receives money or property from a third party on behalf of the firm and misappropriates it, then the firm is liable to make good the loss.

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11th Commerce : Chapter 5 : Hindu Undivided Family and Partnership : Liabilities of Partner | Partnership | Commerce