This report provides a comparative analysis of the liabilities of partners in partnership firms versus the liabilities of individuals within companies, referencing the Partnership Act 1963. It explores the differences in liability when entering contracts with third parties, highlighting the concept of joint and several liability for partners compared to the limited liability often afforded to company directors and shareholders. The report examines relevant case laws, such as Gabriel Castle Jackson Advertising v Volume Sales (Finance), Checker taxicab Co Ltd v Stone, and Solomon v Solomon, to illustrate the legal principles. It discusses the implications for creditors, the transparency of contracts, and the personal liability of partners versus the liability of the company as a separate legal entity. The analysis concludes that partners in a partnership generally face greater personal liability than individuals in a company structure when engaging in contractual agreements with outside parties.
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