Carter,a partner in a financial planning firm,solicited a client without reporting it to the firm.He used the letterhead,business cards,and facilities of the firm.He then defrauded the client out of $138 000 and left for Honduras.Will the firm be liable to this client?

Question

Quizplus · Accepted Answer

According to the doctrine of partnership law known as the "joint and several liability," all partners are responsible for the actions of another partner that may result in a wrongful act. In this case, Carter committed a wrongdoing by using the firm's letterhead, business cards, and facilities to solicit a client without informing the firm, and defrauding the client out of a significant amount of money. Since Carter was a partner in the firm, the firm will be held responsible for the damages caused by his actions. Furthermore, the firm could then pursue Carter and attempt to collect for its loss.

Carter,a Partner in a Financial Planning Firm,solicited a Client Without