Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following two provisions are from two different partnership statutes. These provisions address the liability of a partner for limited liability partnership obligations. Specifically, it's

The following two provisions are from two different partnership statutes. These provisions address the liability of a partner for limited liability partnership obligations. Specifically, it's the language from the particular statute that specifies what I ref erred to as the "liability shield" of the LLP form. Does provision A provide for a full shield or a partial shield?-What about provision B? Which provision would you prefer if you were a partner in an LLP? Which provision would you pref er if you were a contract creditor of an LLP? What about if you were a tort creditor of an LLP?

Provision A: A partner in a limited liability partnership is not liable, directly or indirectly, including by way of indemnification, contribution, or otherwise, for a debt, obligation, or liability chargeable to the partnership arising from negligence, wrongful acts, or misconduct committed while the partnership is registered as a limited liability partnership and in the course of the partnership business by another partner, or an employee, agent, or representative of the limited liability partnership.

Provision B :An obligation of a partnership incurred while the partnership is a limited liability partnership, whether arising in contract, tort, or otherwise, is solely the obligation of the partnership. A partner is not personally liable, directly or indirectly, by way of contribution or otherwise, for such an obligation solely by reason of being or so acting as a partner.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Bluebook A Uniform System Of Citation

Authors: Harvard Law Review, Columbia Law Review, Yale Law Review

21st Edition

0578666154, 978-0578666150

More Books

Students also viewed these Law questions

Question

What are the uses of secondary authority?

Answered: 1 week ago