Fiduciary Duties

Question 1

Fiduciary relationship

Answer 1

Partners are in a fiduciary relationship with one another and must act honestly and in good faith

Question 2

Duty of Loyalty

Answer 2

• Act in good faith and fairly toward the other partner
• account for any property, profit, or benefit derived by the partner from the partnership
• refrain from usurping corporate opportunities for a personal advantage, engaging in self-dealing, or competing with the partnership

Question 3

Duty of care

Answer 3

Each partner has a duty to refrain from engaging in
1. grossly negligent or reckless conduct
2. intentional misconduct
3. a knowing violation of the law