A partnership incurs no liability for a breach of trust committed by one of its partners.

Question

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In a general partnership, each partner is personally liable for the actions of the other partners and for the debts and obligations of the partnership. Therefore, if one partner commits a breach of trust, the entire partnership can be held liable. However, in a limited partnership or limited liability partnership, there may be some protection from personal liability for certain partners.

A Partnership Incurs No Liability for a Breach of Trust