ACCA Applied Skills · Corporate and Business Law (Global) · Partnerships
Gita, Hugo and Ines are partners in a general partnership. The firm owes a supplier 90,000 under a contract. The firm's assets are insufficient and the supplier sues. Which statement about the partners' liability is correct?
The supplier can recover the whole debt from any one partner personally. General partners have unlimited liability for firm debts, and a partner who pays more than their share may claim contribution from the others.
- AEach partner is liable only for one third of the debt
- BThe supplier can claim the whole debt from any partner, whose personal assets are at riskCorrect
- COnly the partner who signed the contract is liable personally
Explanation
In a general partnership liability is unlimited and, for contracts, joint (or joint and several depending on jurisdiction), so the creditor can pursue any partner for the full debt. The partner who pays can seek contribution from the others. A one-third limit applies only between partners.
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