Extent and Limitation of Liability of Limited Liability Partnership and Partners [Sections 26 — 31]

A junior partner in an LLP signs a supply contract for a hundred laptops, and the LLP cannot pay. The supplier wants to attach the flat of another partner who never met him and never saw the contract. Can he? In an ordinary firm, yes. In an LLP the answer is usually no, and that one word is why the structure exists. But the shield has holes: your own wrong, a false claim to be a partner, and fraud all put personal liability back on the table. Sections 26 to 31 draw the map.

In two minutes

An LLP is liable for what its partners do as its agents and its obligations are its own; a partner is not personally liable for them merely by being a partner, nor for other partners' wrongs, but is liable for his own wrongful act, for holding out, and without limit for fraud.

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