Partners are jointly and severally liable for the acts and obligations of their partners

If you are a partner in a General Partnership, you are liable for contracts that your partner enters and vice versa. Unless you have restrictions on authority. Georgia’s code states that, “all partners are jointly and severally liable for all debts, obligations, and liabilities of the partnership.”

In National Biscuit Company v. Stroud (1959), Stroud refused to pay the plaintiff for bread deliveries his partner, Freeman entered. The court held that Stroud could be held liable for the bread deliveries because partners are jointly and severally liable for the acts and obligations of the partnership. Additionally, there was no agreement to indicate that Freeman didn’t have authority to enter agreements.

Get with your business partner and discuss who has authority to do what. Then record your business agreement indicating that authority.