Week 2: Legal Consequences
A partner acts as an agent of the other partners and for the firm. Allison’s acts bind the firm and Terresa to pay for the jars out of the personal savings equally. The partners are jointly responsible for the purchase of the jars (Sjostrom, 2019). Each partner is jointly and severely liable to pay for the debts of the firm as each of the partner acts as an agent for the other (Sjostrom, 2019). Under the agency law, a partnership firm is liable for losses or debts incurred as a result of actionable comment if the partner acts in the ordinary course of business. Under Section 306 of RUPA, all partners are liable for all the obligations of the partnership unless and otherwise agreed by the claimant or provided by the law (Sjostrom, 2019). Hence, Alison was conducting her duties in the normal course of business, the losses incurred are jointly and severely the liability of both partners.