ICANBusiness LawPartnership Law2024

Under Section 765 of CAMA 2020, if a partner in a registered Limited Liability Partnership (LLP) commits a wrongful act or omission in the course of the LLP's business, what is the extent of personal liability of the non-delinquent (innocent) partners?

AInnocent partners are jointly and severally liable for all obligations arising from the wrongful act.
BInnocent partners are not personally liable for the wrongful act or omission of any other partner of the LLP.CORRECT
CInnocent partners are personally liable up to the full balance of their nominal capital contribution.
DInnocent partners become personally liable only if the LLP defaults on payment for more than 90 days.
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Why the answer is B, and why the others tempt you.
Under Section 765(1) and (2) of CAMA 2020, an obligation of an LLP arising from contract or tort belongs solely to the LLP. A partner is personally liable for his own wrongful acts or omissions, but is not personally liable for the wrongful acts or omissions of any other partner of the LLP.
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