You need to know your liabilities as a partner

A partner can often be responsible for the debts and liabilities accrued by other partners.

Partners act as agents of the business. It is in this way that they can bind the other partners in the business, if the third party believes them to have authority. 

You should understand:

1. It is crucial to have a formal partnership agreement. Personal liability is otherwise unlimited for each partner. This means that you could be bearing the debts of multiple partners. 

2. In the case of your death, your estate can also be liable for the debts and liabilities occurred by other partners entered into before the date of your death. 

If you have further questions, please contact frank@franklaw.com.au

This is not legal advice.