In a partnership, explain what is “Joint and several “ liability.
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In a partnership, it is usual for each partner to accept full liability for the debts of the partnership. In the event that one partner is unable to pay his share of the debts in full, the other partner must take on the balance himself as his own personal liability. This is known as “ joint and several” liability. This is quite a serious implication as all the individual partner need to use personal assets to pay for the debts of the partnership irrespective of whether any one partner is solvent or not! |
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