In a partnership, among others, the mutual duties of partners are
Question and options
In a partnership, among others, the mutual duties of partners are
- duty of absolute good faith, duty not to compete, duty of diligence, duty to indemnify fraud
- duty of absolute good faith, duty not to compete, access to books, majority rights
- duty of absolute good faith, duty to communicate, access to books, profit monopolisation
- duty to encourage, disclose plans and take collective decisions
Answer and explanation
Correct answer: A - duty of absolute good faith, duty not to compete, duty of diligence, duty to indemnify fraud
Under the Partnership Act partners owe duties of utmost good faith (s.9), to indemnify the firm for loss caused by fraud (s.10), to be diligent (s.12), and not to carry on a competing business (s.16). Only the option listing good faith, non-competition, diligence and indemnity for fraud lists duties; the others mix in rights or invented items.
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