Fiduciary Relationships

Question 1

Existence of a Fiduciary Relationship

Answer 1

Partners are in a fiduciary relationship to each other and to the partnership as a whole.

Question 2

Duties Created by the Fiduciary Relationship

Answer 2

(1) Duty of Loyalty

(2) Duty of Care

Question 3

Partner’s Duty of Loyalty

Answer 3

(1) To account for profits, property, opportunities, or other benefits derived by the partner in conjunction with the partnership business;
(2) refrain from dealing with the partnership as or on behalf of a party adverse to the partnership; and
(3) refrain from competing with the partnership.