My liabilities for personal loan of partner


Hi,


I have a small General partnership firm based at Kolkata, India consisting of 2 partners including myself.


My question is:

If my partner takes a PERSONAL loan (not in the name of our firm) from a third party,  can I be held personally liable in case he fails to payback the same?

 

Thanks.

 
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No,

 

Only he (and/or any guarantor if any) will be responsible for the liability.

 
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  You will  be held liable only when guarantee had been given by you else not.. 

 
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FIN

Don't be co borrower, joint applicant, guarantor for a person whose credibility you don't trust.

 
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Legal Consultants

 If your partner has taken a personal loan, you are not liable in default unless:

 a) you stand as a guarantor for that loan

b) the loan is taken to advance the business interest of your partnership firm with your consent

c) your consent was not taken but subsequently the loan was used to advance the business interst of your partnership firm and while doing so, you were aware that the money being used is the same loan taken by your partner

 
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