5/8/2011 Liabilities of partners to third parties Liability in contract: -joinly liable for firm debts while a partner:s 11. How does a partner bind the partnership to contracts? Authority: Actual (express or implied) -Apparent ostensible PO s 7:Every partner is agent for the firm and for other partners. Mercantile Credit Ltd v Garrod whether sale of car by a partner in a partnership operating motor garage business was an act done for carrying on in the usual way business of the kind carried on by the firm -ie,whether within apparent authority of partner. 11 Liabilities of partners to third parties 。Liability in tort. PO s 12:firm liable for torts committed in the ordinary course of business of the firm or with the authority of the partners. PO s 14:liability is joint and several Limited Partnerships Ordinance(Cap 37). 65/8/2011 6 11 Liabilities of partners to third parties • Liability in contract: - joinly liable for firm debts while a partner: s 11. • How does a partner bind the partnership to contracts? • Authority: - Actual (express or implied) - Apparent I ostensible • PO s 7: Every partner is agent for the firm and for other partners. • Mercantile Credit Ltd v Garrod - whether sale of car by a partner in a partnership operating motor garage business was an act done for carrying on in the usual way business of the kind carried on by the firm - ie, whether within apparent authority of partner. 12 Liabilities of partners to third parties • Liability in tort. • PO s 12: firm liable for torts committed in the ordinary course of business of the firm or with the authority of the partners. • PO s 14: liability is joint and several • Limited Partnerships Ordinance (Cap 37)