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CSEET · Business Laws and Management · Elements of Law relating to Partnership and Limited Liability Partnership

Under the Limited Liability Partnership Act, 2008, an obligation of the limited liability partnership, whether arising in contract or otherwise, is:

An obligation of the LLP, whether arising in contract or otherwise, is solely the obligation of the LLP, and its liabilities are met out of the LLP's property, unlike partners of an ordinary firm who are personally liable.

  1. ASolely the obligation of the limited liability partnershipCorrect
  2. BThe joint obligation of every partner personally
  3. CThe obligation of the designated partners only
  4. DThe obligation of the partner who dealt with the creditor

Explanation

Section 27(3) provides that an obligation of the LLP, whether arising in contract or otherwise, shall be solely the obligation of the LLP, and its liabilities are met out of the LLP's property. This distinguishes it from a general partnership, where partners are liable personally.

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