Partnership Flashcards
1
Q
Advance of Funds to Partnership and Reimbursement
A
Partnership shall reimburse partner for advance of funds beyond amount of capital partner agreed to contribute, if made in proper course of partnership and partner complied with duties of care and loyalty.
If insufficient partnership funds to reimburse, partner entitled to reimbursement from other partners based on each percentage ownership.
2
Q
Action against a partner for misconduct
A
Partnership can maintain action against partner for violation of fiduciary duties (loyalty and care).
Partner can maintain direct action against another partner, but not derivative action.
