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Legals

In: Business and Management

Submitted By mabitbol
Words 1074
Pages 5
Chapter 32

Contracts of Partnership • Personal liability – if the partnership is contractually bound, each partner has joint and several, unlimited personal liability. • Joint and Several Liability- a creditor may sue the partners jointly as a group or separately as individuals.

Authority to Bind Partnership- a partner who has actual authority (expresses or implied) or apparent may bind the partnership. • Actual Express Authority- authority set forth in the partnership agreement, in additional agreements among partners, or in decisions made by a majority of the partners regarding the ordinary business of the partnership. • Actual Implied Authority- authority that is reasonably deducted from the nature of the partnership, the terms of the partnership agreement, or the relations of the partners. • Apparent Authority- an act of a partner for apparently carrying on in the ordinary course the partnership business or business of the kind carried on by the partnership binds the partnership, so long as the person has no knowledge or notice of the lack of actual authority.
Partnership by Estoppel- imposes partnership duties and liabilities on a non partner who has either represented himself or consented to be represented himself or consented to be represented as a partner.

Torts and Crimes of Partnership

Torts- the partnership is liable for loss or injury caused by any wrongful act or omission or other actionable conduct of any partner while acting within the ordinary course of the business or with the authority of her copartners; the partners are jointly and severally liable.

Breach Of Trust – the partnership is liable if a partner is the course of the partnerships business or while acting with authority of the partnership breaches a trust by misapplying money or property entrusted by a third person; the partners are jointly and...

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