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Liability of Partners on Firm Contracts


LIABILITY OF PARTNERS ON FIRM CONTRACTS. Partnership contracts at law, as distinguished from equity, are considered joint, and are neither several, nor joint and several. That is, the obligation arising from firm contracts affects the partners jointly and makes their liability joint. Hence in suits against a firm all the partners should be joined unless out of the jurisdiction or bankrupt. And a judgment against one partner on a firm obligation re leases the other partners, as it merges the joint liability in the judgment. So a compromise by a partner with a firm creditor would release the firm. But the statutes may change the joint action into one both joint and several, prevent the merging of the entire claim in a judgment against one or more, and make a composition with one partner affect him only, and not discharge the rest.