What are the implications for Third Parties dealing with LLPs?
Every member of a LLP is considered in law to be an agent of the LLP, and as such may represent and act on behalf of the LLP in all its business. As a third party would not normally have access to any partnership agreement they would be entitled to rely on the fact that the member is an agent of the LLP. Anyone entering into financial transactions, such as leasing or factoring agreements or lending money to the LLP may still require personal guarantees from the members in the same way that shareholders of a limited company often give guarantees as security.
