New Jersey Business Partnership Obligations

New Jersey business partnership obligations are important to have an understanding of if you are part of a business partnership. According to New Jersey Uniformed Partner Act 42:1A-18 a partner’s obligations and liability are as follows:

• Except as otherwise provided in subsection b. and c. of this section‚ all partners are liable jointly and severally for all obligations of the partnership unless otherwise agreed by the claimant or provided by law.
• A person admitted as a partner into an existing partnership is not personally liable for any partnership obligation incurred before the person’s admission as a partner.
• An obligation of a partnership incurred while the partnership is a limited liability partnership‚ whether arising in contract‚ tort‚ or otherwise‚ is solely the obligation of the partnership.  A partner is not personally liable‚ directly or indirectly by way of contribution or otherwise‚ for such an obligation solely by reason of being or so acting as a partner. This subsection applies notwithstanding anything inconsistent in the partnership agreement that existed immediately before the vote required to become a limited liability partnership under subsection b. of section 47 of this act.

When involved in a partnership dispute it is important to consult with your lawyer immediately to discuss the best course of action for your particular situation.

Date: 04/26/2013 | Category: Partnership Disputes