Liability are made of two parts contractual liability and tort liability. According to Kendall v Hamilton , creditors have only one opportunity to sue partners who have jointly liable for contractual obligations. However, creditors can sue several times in tort liability. There are different situation in contract about the liability. Firstly, if partner signs contract with actual authority and for purpose of partnership , based on s 9 (1) all partners have jointly liable. Secondly, if partner signs contract without the notice of other partner, but the third party trust he to sign the contract (apparent authority) in the usual way of this kind of partnership business, according to s 9 (1) all partners have jointly liable. Finally, if the partner doesn’t have authority to sign contact, it is the personal liable. This means that who sign the contract which have liable.
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Liability of limited partner limited to amount shown in register. A limited partner is a partner in a partnership whose liability is limited to the extent of partner’s share of ownership. A limited partner takes part in a partnership for less than five hundred house in a year, otherwise he or she would be considered a general partner. A limited partner contributed financially to the business in exchange for profit and could not undertake obligations on behalf of the partnership or manage the business. Hence, a limited partner cannot use own assets to pay off the business debts and he may lose his financial investment in the corporate. If a limited partner takes an active role in the company, he or she may be become personally liable. Based on PA, the requirements of this part relatin...
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... of car park is one of the partnership expansion activities.
However, it is possible that Oola acted with apparent authority because her responsibility to do daily check of the car park. Spike, Tex and Oola are jointly liable for Reena’s medical cost. Although Oola’s omission directly cause Reena’s injury, Oola is one of the partners. The wrong act of Oola is closely connected with authority act which can fairly and properly be regarded as committed while acting in the ordinary course of the partnership business. Liability for wrongs is joint or several. This means that if Reena sues some partners who are unable to recover full compensation, she could later sue other partners.
Spike, Tex and Oola are partners and due to Oola’s wrong act that forgot to carry out her usual checks, the Hasta Lavista business is liable for Renna’s cost.
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