Duties

Question 1

Duties owed to other gps

Answer 1

1. partners in general partnerships owe fiduciary duties of loyalty and care to each other and to the partnership
   i. partners owe duties to the partnership (the business entity)
   ii. partners also owe duties to each other partner
   iii. duty of loyalty: treat partnership fairly, not adverse, act for partnership’s benefit only
   iv. duty of care: gross negligence is the standard

Question 2

Duty of disclosure

Answer 2

i. each partner and the partnership must furnish:
a. without demand: any information concerning the partnership’s business and affairs reasonably required to properly exercise the partner’s rights and duties
i) the other partners must tell you things without you asking
ii) cannot violate your rights without telling you
b. on demand: any other information concerning the partnership’s business and affairs, but not to the extent the demand is unreasonable and improper

Question 3

Which duties can partnership agreements eliminate?

Answer 3

partnership agreements can eliminate the duty of disclosure, but not the duties of care and loyalty