Business associations - partnership liability? (1 Viewer)

[0o0]

hi all

im doing business law at the moment and am having some difficulty understanding liabiltiy of partners. please lend a helping hand.

from what i gather there 2 types of actions: contract (joint liability) and torts (joint and several liability).

my question is, why would anyone ever use joint and several liability, wouldnt it be just easier to sue the partnership under joint liability hence catching everyone and let the defendents sort it out amongst themselves?

i really dont get what the main differences are between these 2, could someone maybe name me a few cases on austlii or whatever that highlights partnership liability?

thanks all.

 

[Minai]

hi all

im doing business law at the moment and am having some difficulty understanding liabiltiy of partners. please lend a helping hand.

from what i gather there 2 types of actions: contract (joint liability) and torts (joint and several liability).

my question is, why would anyone ever use joint and several liability, wouldnt it be just easier to sue the partnership under joint liability hence catching everyone and let the defendents sort it out amongst themselves?

i really dont get what the main differences are between these 2, could someone maybe name me a few cases on austlii or whatever that highlights partnership liability?

thanks all.

A proper reason should be in any corporations law textbook, but from my studies, it's generally because some cases involve specific torts such as negligent misrepresentation, and in less clear cut cases, lawyers will often consider whether an action under tort would be more successful than an action under contract.