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Is the statement that partners are jointly and severally liable for business debts a statuary statement or is it something that established because of case law or common law. Also if partners agree to split the burden of debt to 50%, and then if one of the partners gets bankrupt, will the remaining partner be liable for 50% of the debt or he will still be severally liable. I mean can there agreement of 50% split in case of bankruptcy overrule the severally liable statement. Which one wins: their agreement or the severally liable statement.
Also do case law and common law mean the same thing. Plus are case laws or common law a form of delegated legislation.That’s four separate questions! My head is spinning!
Q1 – it’s in the Partnership Act
Q2 – if one partner dies or goes bankrupt, the remaining partner(s) become liable to take up that partner’s share
Q3 – no, the cases in case law are simply examples where people have disputes and their recourse is to ask the Courts to settle the matter
Q4 – no
Regarding question no.2, does the statement joint and severally liable remain true even if the partners have agreed differently.
Further, is the partnership act part of statue.On which website can partnership act 1890, 2000 be found. What are links to partnership acts. Are partnership acts for uk and england and wales different and if they are which one is applicable in the exam.
Yes, it doesn’t matter what they agree – if they are full partners (or even sleeping partners) they are jointly and severally liable
If I refer to the Partnership Act, then of course it’s part of statute (not statue!)
Look on the internet for yourself!
Different Acts for England and Wales? I should coco! No, England and Wales are covered by the legislation
OK?
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