SQE1 · Business Law & Practice
LLP compared with ordinary partnership liability
A limited liability partnership and an ordinary partnership governed by the Partnership Act 1890 each have three members/partners. In each firm, one of the members/partners, while acting in the ordinary course of the firm's business and with apparent authority, negligently gives advice to a client which causes the client significant loss. In each case the firm itself is liable to the client. A trainee is asked to compare the position of the other two members of the LLP with the position of the other two partners of the ordinary partnership, in respect of that liability to the client. Which of the following best states the comparison?