General Partner - Liability of Partners, Business Law and Ethics

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General Partner - Liability of Partners

The General partner's liability extends for the whole of the debts to the partnership. Thus he is jointly with the other partners. Conversely this reason a creditor can pursue there one of two courses.

1) He can proceed against the partners jointly like i.e. in the firm name. But whereas he obtains judgement against the firm so thus the debt must be satisfied out of the assets of the firm. Well moreover, the assets of the firm are insufficient such like the creditor can look to the private assets of the partners in such order to satisfy his debt.

2) The creditor can proceed against various individual partner. But where he obtains judgement against a certain partner as well like this judgement cannot be satisfied out of the private property of such partner like, the creditor cannot proceed against the remaining partners there.

3) However the creditor must pursue either the other or one course. Else whether he pursues the second course express above like the partner against that whom the judgement is obtained so will be liable for pay the full amount. However he has a right to recognised upon the other partners, conversely to contribute the shares such they should bear there.


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