14Liability for loss, injury or penalty

14 Liability for loss, injury or penalty (1) A firm other than an incorporated limited partnership is liable to the same extent as a partner in the firm for any loss, injury or penalty caused by an act (including omission) of the partner if: (a) the act occurred while the partner was acting in the ordinary course of the firm's business or with the authority of the other partners; and (b) for a loss or injury – the loss or injury is not suffered by a partner in the firm. (2) An incorporated limited partnership is liable to the same extent as a general partner in the partnership for any loss, injury or penalty caused by an act (including omission) of the general partner if: (a) the act occurred while the partner was acting in the ordinary course of the partnership's business or with the partnership's authority; and (b) for a loss or injury – the loss or injury is not suffered by a partner in the partnership. (3) For subsections (1) and (2), an act of a partner as a director must not be taken to have occurred in the ordinary course of the firm's business or with the firm's authority only because of one or more of the following: (a) the partner obtained the firm's agreement or authority to be appointed or to act as the director; (b) the remuneration the partner receives as the director forms part of the firm's income; (c) another partner in the firm is a director.

Part 2 Partnerships generally Division 2 Relationship of partners to persons dealing with them Partnership Act 1997 9 (4) In this section: director means: (a) a director of a corporation within the meaning of the Corporations Act 2001; or (b) a member of a body established by a law of the Territory.