Warning
Info
Warning
Info
Simple English definitions for legal terms
L.P.
Read a random definition: fructus separati
A quick definition of L.P.:
Term: L.P.
Definition: L.P. stands for limited partnership, which is a type of partnership where there are one or more general partners who manage the business and are personally liable for its debts, and one or more limited partners who invest money but have limited liability. This means that the limited partners are not responsible for the debts of the business beyond the amount of their investment. L.P. is a legal term that is often used in the context of business and finance.
Abbreviation: L.
Related term: Law Reports (L.R.)
A more thorough explanation:
L.P.
L.P. stands for limited partnership, which is a type of partnership where there are one or more general partners who manage the business and are personally liable for its debts, and one or more limited partners who contribute capital but have limited liability.
John and Jane start a business together as a limited partnership. John is the general partner and manages the business, while Jane is a limited partner who contributes money but has no say in how the business is run. If the business incurs debts, John is personally liable for them, but Jane's liability is limited to the amount of money she invested.
Another example could be a real estate investment partnership where one partner is responsible for managing the properties and the other partner contributes money but has limited liability.
The examples illustrate the concept of limited partnership, where there are two types of partners with different levels of liability and responsibility. The general partner has unlimited liability and is responsible for managing the business, while the limited partner has limited liability and is only responsible for the amount of money they invested. This type of partnership is often used in businesses where one partner has expertise in managing the business and the other partner has capital to invest.