Question

Michael, Sarah, and Mindy are partners in a limited partnership that buys commercial real estate. Michael and Sarah are limited partners, and Mindy is a general partner. Business is booming, so Mindy asks Sarah for help. Sarah offers to buy land from LandInvest Co. , expressly stating that she is acting as a representative of the limited partnership. Sarah drafts the contracts, participates in the negotiation, and completes the sale on her own. Sarah also takes on bookkeeping and related tasks to free up Mindy to locate new sellers. If a dispute arises with LandInvest Co. related to the contract, and LandInvest Co. sues the limited partnership, it is possible that:__________

Answer 1

Answer:

The correct answer is a. Sarah will be held personally liable even though she is a limited partner, and Mindy will also be held liable as a general partner.

Explanation:

For its part, it should be noted that each of the partners of a limited company has a series of rights.3 Among them are the following:

• Right to participate in the distribution of benefits and in the assets of the company in case of liquidation.
• Right of first refusal in the acquisition of participations of outgoing partners.
• Right to participate in social decisions and to be elected as administrators.
• Right to information in the periods established in the deeds.
• Right to obtain information on the accounting data of the Company.