If my partner in a LP, setup line of credit without my signature and ran up debt, is this legal for him or the bank to do?

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If my partner in a LP, setup line of credit without my signature and ran up debt, is this legal for him or the bank to do?

The credit was set up in the LP name. Am I liable for any of the debt? I can’t get a copy of the bank records.

Asked on August 23, 2012 under Business Law, Colorado

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Under the laws of all states in this country, a partner is liable for the acts and conduct of another partner in the venture done within the course and scope of it. As such, it appears that you are equally responsible for the debt that you have written about with the bank where your recourse is to have your partner repay the entire amount assuming the debt was not incurred for a partnership venture.


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