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Relation of partners to one another

Corporate & Other Laws

Duty to indemnify for loss caused by fraud section 10 * my question is when one partner commit fraud to the third party who will liable ? * when one partner commit fraud to co partners who will liable ? Video Details ------------- Business Laws 3.2 - Relations of Partners #1. General duties of partners

Ajitha Palaniyappan

CA Foundation

★ 0

15-May-24 10:56

Answers (1)

If one partner commits fraud against a third party, the partnership as a whole is generally not liable unless the fraud was committed in the ordinary course of the partnership's business or with the authority of the other partners. In such cases, the partnership may be held liable for the fraud committed by one of its partners. If one partner commits fraud against the other partners or the partnership itself, the defrauded partners can hold the fraudulent partner personally liable for the loss caused by the fraud.

Ashlesha Atal

Faculty

16-May-24 11:54

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