Partners' Responsibilities Flashcards

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1
Q

What duty do partners have toward each other? (in accordance with common law)

A

Partners must be fair and honest, sharing information and profits, and not starting competing businesses without agreement

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2
Q

What are examples of duties under the duty of utmost good faith? (ss28-30 PA 1890)

A

Not suppressing information affecting valuation in business dealings, sharing profits from personal business activities, and ensuring partnership funds are not misused

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3
Q

What further responsibilities can partners enforce against each other?

A

They must share losses based on their agreement (PA 1890, s24(1), and the partnership must cover partners’ fair share of liabilities or expenses (PA 1890 s 24(2)).

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4
Q

Where do most partner responsibilities come from?

A

They come from the partnership agreement, whether it’s express or implied

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