Partners' Responsibilities Flashcards
What duty do partners have toward each other? (in accordance with common law)
Partners must be fair and honest, sharing information and profits, and not starting competing businesses without agreement
What are examples of duties under the duty of utmost good faith? (ss28-30 PA 1890)
Not suppressing information affecting valuation in business dealings, sharing profits from personal business activities, and ensuring partnership funds are not misused
What further responsibilities can partners enforce against each other?
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)).
Where do most partner responsibilities come from?
They come from the partnership agreement, whether it’s express or implied