TREADSTONE LAW · ONTARIO · DIGITAL LEGAL SERVICES · EST. MMXXI ·TSL
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Do partners in an Ontario general partnership have unlimited personal liability for each other's actions?

TSL Written by the Treadstone Law team· Updated August 2026

Yes. Under Ontario's Partnerships Act, partners in a general partnership are jointly and severally liable for the partnership's debts and for the acts of other partners done in the ordinary course of the partnership's business. This means a creditor generally isn't limited to going after only the partner who caused the problem — they can pursue any partner, or all of them, for the full amount, and the partners then have to sort out the split among themselves.

This is the central risk of operating as a general partnership rather than through a corporation: there's no separate legal entity absorbing the liability, and no shield for a partner who did nothing wrong personally but is nonetheless exposed because of what a co-partner did in the course of the partnership's business. This exposure applies whether or not the partnership has a written agreement, since the liability rule comes from the statute itself, not from what the partners agreed among themselves. Partners who want to limit this exposure typically need to consider a different structure — such as a limited partnership, a limited liability partnership where eligible, or incorporating — rather than trying to contract around it informally.

Key takeaways

  • General partners are jointly and severally liable for partnership debts and each other's acts
  • This liability applies to acts done in the ordinary course of the partnership's business
  • A written partnership agreement does not remove this statutory liability exposure
  • Consider a limited partnership, LLP, or incorporation to actually limit this risk
This is general information, not legal advice. It doesn’t create a lawyer–client relationship, and the rules can change. For advice on your situation, a Treadstone corporate lawyer can help.
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