Liabilities of Partners In Partnership Firm
According to section 13 (c) of the partnership act Subject to contract between the partners, the obligations of a partner are as follows:-Severally and joint liabilities of a partner
Every partner is severely and jointly liable for all acts of the firm done.
Liabilities for debts
Every partner is severely and jointly liable for business debts.
Liabilities for loss
Every partner is to beat the loss of the firm in the agree proportion and in the absence agreement, loss must be borne by all the partners equally.
Liabilities of insolvent partner
The firm is not liable for any transaction of the insolvent partner after the date on which the order of insolvent by court is made. The estate of insolvent partner is not liable for obligations of the firm after the date on which the order of insolvent is issued.
Liabilities of incoming partner
An incoming partner is liable for all acts of the firm done after he becomes a partner. But he is not liable for any obligation of the firm before his date of admission.
Liability of retiring partner
A retired or expelled partner will not be liable for any act of the firm after his retirement. But retired or expelled partner will be liable to third parties for all acts of the firm until he serves public notice of retirement or expulsion.
Liability for injuries
All the partners are responsible for injuries done to outsiders by one of the partners provided the partner has caused this injury during the proper conduct of the partnership affairs.
The property of the deceased partner
The rights and duties of partners are determined by agreement between the partners. But where the agreement is silent the partnership act determines the rights and duties of the partners.