CA Foundation · Business Laws · The Limited Liability Partnership Act, 2008
Rohit, a partner in Vertex Consulting LLP, acts in dealing with a client in a way that causes loss through his own wrongful act. Which statement is correct?
Rohit is personally liable for his own wrongful act, while the LLP is liable if the act was done in the course of its business. The other partners are not personally liable for his independent act, unlike in an ordinary partnership.
- AOnly Rohit is personally liable for his wrongful act; the LLP is liable for it only if done in the course of its business, and other partners are not liable for his independent actCorrect
- BEvery partner is personally liable equally for Rohit's wrongful act
- CNeither Rohit nor the LLP is liable as the LLP has separate personality
- DOnly the LLP is liable, and Rohit cannot be personally liable under any circumstance
Explanation
A partner is not personally liable for another partner's independent wrongful act. The LLP is liable if the act was in the course of its business or with its authority. Rohit remains personally liable for his own wrongful act. Separate personality does not shield the wrongdoer, so options C and D are wrong, and option B reflects ordinary partnership rules.
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