Are new partners equally liable for the actions of the partnership before they joined?
No, unless this is part of the agreement under which they joined. • What about a partner who has left the partnership? A retiring partner is liable for actions taken by the partnership whilst they were a partner, unless there is a specific agreement to the contrary. • If I only have enough money in the bank account to cover part of a cheque I have written, can the bank pay out for that amount? No. The bank can only pay out the full amount of the cheque, or not at all. • Isn’t it better to enter into a periodic tenancy agreement for my shop in case the business fails? That might seem like a good idea on the face of it, but remember, you tend to build up goodwill in a particular location, and if you don’t have a fixed term lease, you may be evicted with a month’s notice and lose all the goodwill you have worked to establish. • Is an assignment of a lease the same as sub-letting? No. It’s better to be able to assign a commercial lease, because sub-letting means you are still responsible t
Related Questions
- One of our firms partners has recently joined (or departed) our firm. Is our new partnership considered a new firm according to the firm registration and peer review requirements?
- Are new partners equally liable for the actions of the partnership before they joined?
- Are general partners unlimitedly liable for the debts of the partnership?
