Which of the following is correct with respect to the law of partnership?
A)A partnership cannot be created inadvertently.
B)Each partner is vicariously liable for the wrongful acts of their partners committed in the course of the partnership business.
C)Partners are only liable for the torts of their partners if they in fact knew that the wrongful conduct was taking place.
D)Joint and several liability means that each partner can be sued several times.
E)Partners have unlimited liability,meaning that they can lose up to the amount they have invested in the business.

Question

Quizplus · Accepted Answer

The law of partnership holds each partner responsible for the wrongful acts of their partners done within the course of the partnership business. Hence, option B is correct. Option A is incorrect as a partnership can come into existence through implied or expressed agreement or even accidentally. Option C is incorrect since partners can be held liable for torts committed by other partners even if they were ignorant of it. Option D is also incorrect since joint and several liability means that each partner can be sued for the entirety of the debt or damages, rather than multiple times. Option E is somewhat true, but it doesn't cover the entirety of unlimited liability of the partners. Partners are responsible for all the liabilities of a business, including debts and judgments, and not just limited to their investment in the partnership.

Which of the Following Is Correct with Respect to the Law