Legal Question in Business Law in North Carolina

I am a middle school business teacher. A question was asked today in class about partnership law. General partners have unlimited partnership debt liabiltiy. Can that be changed with a partnership agreement while the partners maintain their status as general partners? In other words, in a 2 person partnership, can they sign an agreement that each partner will be responsible for 50% of the partnership debt if the partnership is terminated?

Thank you


Asked on 11/30/10, 7:20 am

1 Answer from Attorneys
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I can say the answer is yes. The partners can agree they will each assume responsiblity for half of the total partnership debt if the partnership is terminated. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 12/05/10, 11:39 am


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