Jointly and Severally liable....

The Difference between Sect. 11 and 14 of the Partnership Act 1961.

Sect. 11

1.         Applicable for debts and obligations of a contractual in nature.

2.         Partners are Jointly Liable if all partners are still alive – Only one action can be taken.

3.         Partners are only severally liable if one or some of the partners is dead , provided:-

i)                    He (the deceased)  is a partner on the time the firm holds the liability

ii)                   Action against living partners must first be taken and if the judgment has not

been satisfied, further action can be taken on the estate of the deceased to satisfy the debts or obligations.

iii)                 Judgment cannot be enforced until the Deceased's personal creditors are fully discharge.

Sect. 14

1.         Deals with liability under torts and other wrongs under sect. 12 and 13.

2.         Partners are Jointly and Severally Liable

3.         Can take further action until the judgment is satisfied

4.         Each partner can be sued together or in turn until the full amount is recover.

p/s: Sharing knowledge... 

Subject: Law of Association 1

Act: Partnership Act 1961

Section: 11 and 14