CA Inter P2 · Chapter 11 · Question 8 of 11
Partner P of Beta LLP negligently caused a loss to a client while acting in the course of the LLP's business. Partner Q had no role in it. Under sections 27 and 28, which is correct?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Beta LLP is liable to the client, P is personally liable for his own wrongful act, and Q is not personally liable merely because he is a partner
Explanation
Under section 27(2), an LLP is liable if a partner is liable to any person as a result of a wrongful act or omission in the course of the LLP's business or with its authority. Section 28(1) provides that a partner is not personally liable for an obligation of the LLP solely because he is a partner. Section 28(2) preserves a partner's personal liability for his own wrongful act or omission.
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