This report, prepared for a Company Law module (LAW3001S) at University College Dublin, examines and compares two primary partnership structures: ordinary partnerships and limited liability partnerships (LLPs). The introduction highlights the importance of understanding business structures and their impact on liability. The report then delves into the characteristics of ordinary partnerships, including their ease of formation but also the potential for unlimited liability, where partners are jointly and severally liable for business debts and the actions of other partners. The report uses legal cases such as Mercantile Credit Ltd v Garrod and Polkinghorne v Holland & Whitington to illustrate the potential unfairness of this liability. The report then transitions to LLPs, emphasizing their separate legal personality and the key advantage of limited liability. This means partners are generally not liable for the actions of other partners or the debts of the firm, protecting their personal assets. The report concludes by summarizing the benefits of LLPs over ordinary partnerships, particularly in terms of protecting partners from the actions of others and safeguarding personal assets, despite the potentially higher costs associated with formation.
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