Q: I took out a loan in my own name for a small, joint business venture. If the venture falters and the loan has to be repaid from personal assets, does my partner have to repay half the loan?

A: If one partner borrows for the purpose of a joint business, the other partner is also obligated, even though he did not participate in procuring the loan, because the first partner is viewed as an agent of the second partner. This is true provided that the loan was explicitly taken on behalf of the partnership, or the first partner borrowed the money at the instruction (or with the consent) of the second partner, or if the money was invested directly in the partnership (C.M. 77:2; Shach 77:9; Nesivos 77:4).

If the second partner questions whether the loan was taken for the purpose of the joint business or for personal use of the first partner, the burden of proof is on the first partner.