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Discuss the conditions under which LLP will be liable or not liable for the act of the partner?
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Discuss the conditions under which LLP will be liable or not liable fo...
Conditions for LLP's Liability for Partner's Acts
LLP, being a separate legal entity, is liable for its own acts and omissions. However, there are certain conditions under which LLP will be liable or not liable for the acts of its partners.
1. Partner acted within the scope of authority: If the partner acted within the scope of his/her authority, then LLP will be liable for the partner's acts. The scope of authority can be determined by the LLP agreement or by the partner's conduct.
2. Partner acted outside the scope of authority: If the partner acted outside the scope of his/her authority, then LLP will not be liable for the partner's acts. In such a case, the partner will be personally liable for his/her acts.
3. Partner acted in contravention of LLP agreement: If the partner acted in contravention of the LLP agreement, then LLP will not be liable for the partner's acts. In such a case, the partner will be personally liable for his/her acts.
4. Partner acted with intent to defraud: If the partner acted with intent to defraud, then LLP will not be liable for the partner's acts. In such a case, the partner will be personally liable for his/her acts.
5. Partner acted in a criminal manner: If the partner acted in a criminal manner, then LLP will not be liable for the partner's acts. In such a case, the partner will be personally liable for his/her acts.
Conclusion
Thus, LLP will be liable for the acts of its partners if the partner acted within the scope of his/her authority. However, if the partner acted outside the scope of his/her authority, in contravention of the LLP agreement, with intent to defraud, or in a criminal manner, then LLP will not be liable for the partner's acts.
LLP, being a separate legal entity, is liable for its own acts and omissions. However, there are certain conditions under which LLP will be liable or not liable for the acts of its partners.
1. Partner acted within the scope of authority: If the partner acted within the scope of his/her authority, then LLP will be liable for the partner's acts. The scope of authority can be determined by the LLP agreement or by the partner's conduct.
2. Partner acted outside the scope of authority: If the partner acted outside the scope of his/her authority, then LLP will not be liable for the partner's acts. In such a case, the partner will be personally liable for his/her acts.
3. Partner acted in contravention of LLP agreement: If the partner acted in contravention of the LLP agreement, then LLP will not be liable for the partner's acts. In such a case, the partner will be personally liable for his/her acts.
4. Partner acted with intent to defraud: If the partner acted with intent to defraud, then LLP will not be liable for the partner's acts. In such a case, the partner will be personally liable for his/her acts.
5. Partner acted in a criminal manner: If the partner acted in a criminal manner, then LLP will not be liable for the partner's acts. In such a case, the partner will be personally liable for his/her acts.
Conclusion
Thus, LLP will be liable for the acts of its partners if the partner acted within the scope of his/her authority. However, if the partner acted outside the scope of his/her authority, in contravention of the LLP agreement, with intent to defraud, or in a criminal manner, then LLP will not be liable for the partner's acts.
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Discuss the conditions under which LLP will be liable or not liable for the act of the partner?
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Discuss the conditions under which LLP will be liable or not liable for the act of the partner? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Discuss the conditions under which LLP will be liable or not liable for the act of the partner? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Discuss the conditions under which LLP will be liable or not liable for the act of the partner?.
Discuss the conditions under which LLP will be liable or not liable for the act of the partner? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Discuss the conditions under which LLP will be liable or not liable for the act of the partner? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Discuss the conditions under which LLP will be liable or not liable for the act of the partner?.
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