--%>
Assignment Help - homework help

Liability of partners

Liability of partners:

A) Under contract law:

  • Liability is joint only (collectively);
  • The creditor has only one right of action (except in NSW, where liability is now joint and several).

B) Under the law of torts:

  • Liability is joint (collectively) and several (individual);
  • Liability of co-partners only arises:

-Where the act or omission was in the ordinary course of the business of the firm; or
-It was with the authority of the co-partners.

C) Holding Out:

  • A person who holds themselves out as a partner by their words or conduct may become liable as an ‘apparent partner’.

D) Retiring partners:

  • Remain liable for debts incurred before retirement unless the creditors and other partners agree otherwise;
  • May be liable for debts incurred by the partnership after retirement if they have not taken steps to notify former and new customers of their retirement.

   Related Questions in Managerial Accounting

  • Q : Partners-firm and firms name What do

    What do you understand by the terms partners, firm and firms name? Answer: The persons who have entered into a Partnership with each other are individually termed 'P

    		•
  • Q : Define Common Cost Common Cost : It is

    Common Cost: It is the cost of resources used jointly in the production of two or more outputs and the cost can’t be directly traced to any one of those outcomes.

    		•
  • Q : Define Differential Cost Differential

    Differential Cost: The cost difference predicted when one course of action is adopted rather than others.

    		•
  • Q : Cash flows from operating activities

    The first section of the statement of cash-flow. Cash flows from operating activities include transactions (involving cash) that relate to the normal busi- ness activities of the entity. Cash-flows in this section usually involve cash and other current asset or curren

    		•
  • Q : Define Partnership Accounting

    Partnership Accounting: A business can be a firm, a partnership, or a solitary proprietorship. The corporation is incorporated at state level. The sole proprietorship is one person in business. A partnership is two or more than two persons with an agr

    		•
  • Q : Budgetary accounts Accounts used in

    Accounts used in governmental accounting to record the budget amounts but not the actual amount. For example, at the beginning of the accounting period, the planned amount of tax revenue, revenue from license, and inflows from fines would be recorded as one amount in

    		•
  • Q : Define the term Strategic management

    Briefly define the term Strategic management and also state the reason why it is designed?

    		•
  • Q : Features of the management accounting

    What are the various features of the management accounting information system?

    		•
  • Q : Blackout period A defined time period

    A defined time period in accounting for stock options. In the mean while the blackout period person granted the option is not allowed to exercise it. This usually occurs after the granting of the stock options and allows the price of the stock to increase above the exercise price.  <

    		•
  • Q : Explain Full-Absorption Costing

    Full-Absorption Costing: It is a technique of costing that assigns (or absorbs) all labor, material, and service or manufacturing facilities and support costs to products or another cost objects. The costs assigned comprise those which do and do not d

    		•