What is a key factor in determining partnership liability?

In the context of partnership liability, the key factor is the wrongful acts of partners in the ordinary course of business. Partnerships operate under the principle of shared liability, which means that partners can be held accountable for actions taken on behalf of the partnership. When a partner commits a wrongful act—such as negligence or fraud—while conducting business activities that are within the scope of the partnership's operations, the partnership itself becomes liable for those actions. This means that not only the individual partner who committed the act can be held responsible, but all partners can also face liability due to the collective nature of the partnership.

This principle is grounded in agency law, where each partner acts as an agent for the partnership. Therefore, if the wrongful act occurs while a partner is acting within the ordinary course of business, the partnership generally bears the financial consequences, protecting third parties who deal with the partnership in good faith.

The other options address different aspects of partnerships but do not capture the primary reason for liability. For instance, while a majority vote may influence certain partnership decisions, it does not determine liability for wrongful acts. Similarly, the authority of partners is significant in some contexts, but liability primarily arises from actions taken within the ordinary course. Formal written agreements can impact the relationship and