What type of liability do partners in a general partnership face for the partnership's obligations?

In a general partnership, partners face joint and several liability for the partnership's obligations. This means that each partner is individually responsible for the entire amount of the partnership's debts and obligations, as well as collectively with the other partners. If a creditor seeks payment from the partnership and cannot fully recover from the partnership's assets, they can pursue any individual partner for the full amount owed.

This principle is crucial because it highlights the risk that each partner assumes when entering into a partnership. Even if one partner is primarily responsible for a particular obligation, all partners can be held liable for it. This structure is designed to provide greater assurance to creditors, as they have multiple avenues for recourse.

Understanding joint and several liability is important in practice, as it influences how partners manage financial risks and their relationships with one another. This liability arrangement differentiates a general partnership from other business structures like corporations or limited liability companies, where liability is more limited.