Duties Owed by Partners

Question 1

Duty of Care

Answer 1

Partner owes fiduciary duty of care and breaches the duty if engaged in:
1) grossly negligent or reckless conduct
2) intentional misconduct
3) knowing violation of law

owed to partners and partnership

Question 2

Duty of Loyalty

Answer 2

Partners owe fiduciary duty of loyalty which requires partners to act in the best interests of the partnership.

Question 2

Partnership Opportunity

Answer 2

Is one that is:
1) closely related to entity’s business,
2) that would competitvely advantage partnership, and
3) that the partnership has the financial ability, knowledge, and experience to pursue

Question 3

Duty of Loyalty Requirements

Answer 3

Partner must:
1) account for property, profit or benefit
2) not have an adverse interest
3) cannot compete with the partnership