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Because each partner is an agent of the firm, each may bind the firmby any act that is part of the firm’s business. Any act of a partner thatis not a part of the firm’s business is not binding on the firm. Similarly,if the majority of the partners vote not to enter a particular contract, andone of the partners ignores the vote and enters that forbidden contract,then that partner alone is bound to that contract.Liability of the PartnersPartners have unlimited liability for all of the debts of the partnershipincurred while they are partners, even to the extent of their personalassets. Partners are liable to other members of the firm for theirshare of the firm’s debts. Partners share losses in the same proportionthat they share profits.In addition, partners are jointly liable with their partners on contractsentered into by any member of the firm acting within the actualor apparent scope of the firm’s business. Joint liability means that inthe event of a lawsuit, all the partners must be sued together. Partnersare jointly and severally (separately) liable for torts committed withinthe scope of the firm’s business. As a result, an injured party has thechoice of suing all the partners together or one or more of them separately.This liability is possibly the most significant drawback to thepartnership approach to doing business. One result is that an innocentpartner can be held responsible for the wrongdoings of other partners.Online Legal AdviceSmall business owners can get legal forms such as contracts and leases fromthe Internet. There are Web sites that exist especially for this purpose. The feesfor access to these legal documents vary. The amount charged depends on thecomplexity of the document. For very complex documents, fees can be brokeninto parts or can be paid by subscription. There are also several Web sites thatoffer consumer documents such as marriage separation agreements. So far therehave not been any widespread efforts to regulate online legal activities. However,some state bar associations have issued strong opinions about offering legaladvice on the Internet. (Source: New York Times, February 22, 2001)Connect Search the Internet for online providers of legal advice. Notice thefine line between making information available and offering legal advice.596 Unit 6: Starting a Business