Joint and several liability When two or more people agree to pay a debt (or similar obligation). It is a joint promise that, if and when the need arises, the partners all agree to pay off the debt together. This means each partner is liable to pay the full amount of the debt, not just his or her own share.
As any one partner can bind (ie commit) the partnership, if it is in the ordinary course of business, then prudence would dictate that all partners sign a facility letter (the formal lending agreement) when borrowing. This will also provide some additional protection to the lending banker should there be a future legal dispute.
A partnership is permitted to trade using all the surnames of the partners or it may trade under a business ...
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