Question

1. How do the agency law rules apply to the interactions between partners?

2. What is the difference between a Limited Partnership and a Limited Liability Partnership?

Answer 1

1. The law of the agency enables a person to hire another person to obtain assets, perform job and sell products and services on his / her behalf. A principal may authorize the officer to perform different tasks or limit the agent to performing particular tasks. However, the officer is under the command of the principal and reflects his / her interests regardless of the scope of power that the principal provides the officer. More importantly, the directors are held responsible for the results of the actions to be directed by the officer.

Relationships between the agencies are established through the mutual approval of the principal and the officer. Although connections between the principal agent can be established through a contract, the agreement is pointless if it is evident enough that both sides want to behave as officer and main. Their intent can either be implied by conduct or expressed by words.

If there is an agency connection, the principal is also liable for any injuries to other sides created by the officer. These may include injury to financial interests of a third party, mental injury, or physical injury.

2. A limited partnership comprises of at least one general partner and at least one limited partner. A restricted liability partnership has no overall partner as each partner in an LLP has the capacity to participate in the company's leadership.

During the 1970s and 1980s, limited partnerships were common. Many company owners are currently forming limited partnerships for movies and other projects that will last for a short time. Compared to limited partnerships, limited liability partnerships are comparatively new.

The general partner is liable for handling the daily operations of the company in a limited partnership. The limited partner is not involved in making managerial choices for the company in a limited partnership. The limited partner is more like a silent partner who has invested in the business in a limited partnership. All of the company's partners are permitted to create management choices for the firm in a limited liability partnership.

If you operate as a limited partnership, the general partner has unlimited corporate loss and debt liability, while a limited partner has restricted liability protection against corporate assets and losses. This implies that the general partner may lose his or her home and other private property as a consequence of losses and responsibilities resulting from the company operation. Limited partners are protected from corporate commitments and debts by private assets.

All partners in an LLP have restricted protection of liability against corporate commitments and debts. Furthermore, partners in an LLP have restricted liability protection against malpractice suits resulting from negligent acts of another partner