1. Joint Liability of Partners

Partners in a firm are jointly responsible for the obligations of the business.

• All partners are equally liable for debts incurred by the firm.
  
• Creditors can sue any one or all partners for recovery.
  
• Each partner must ensure proper conduct of business.
  
• Liability arises from business contracts and operational decisions.
  
• Collective responsibility strengthens trust among external parties.

2. Several Liabilities for Misconduct

A partner may face personal liability for wrongful acts done by themselves.

• If one partner acts negligently, others may also be held responsible.
  
• Any misconduct in the name of the firm binds all partners.
  
• The law considers the firm as a single unit for legal actions.
  
• Personal property of a partner may be used to settle firm obligations.
  
• Liability continues as long as the person is an active partner.

3. Unlimited Personal Liability

Unlike limited companies, partnership firms do not limit personal risk.

• Partners are personally responsible for business losses.
  
• Liability is not restricted to the amount of capital invested.
  
• Individual assets can be claimed to meet firm liabilities.
  
• Financial risks are shared beyond the business boundary.
  
• Each partner should assess risks before entering the partnership.

4. Liability for Acts of Co-Partners

One partner’s actions can legally bind all others in the firm.

• Acts done in the ordinary course of business affect all partners.
  
• A partner must act in good faith to avoid unnecessary burden.
  
• Improper conduct by one can result in firm-wide consequences.
  
• Proper communication among partners reduces such risks.
  
• All partners should monitor each other’s decisions.

5. Liability After Retirement or Death

Liability may extend beyond the time of active involvement in the firm.

• Retired partners remain liable for acts done before retirement.
  
• Proper public notice must be given to limit future liability.
  
• Legal heirs of a deceased partner may face certain obligations.
  
• Liability ends only if formal procedures are followed.
  

Deed clauses often define rules for exit and risk coverage.