Which statements are correct? (i) Partner has a duty of good faith. (ii) Partner has duty not to…
A partner owes a duty of good faith, a duty not to compete with the firm, a duty of due diligence, and a duty to indemnify the firm for loss caused by fraud, all recognised…
Choose your answer
Which statements are correct?
(i) Partner has a duty of good faith.
(ii) Partner has duty not to compete.
(iii) Partner has duty of due diligence.
(iv) Partner has duty to indemnify for fraud.
Answer and explanation
Correct answer D
A partner owes a duty of good faith, a duty not to compete with the firm, a duty of due diligence, and a duty to indemnify the firm for loss caused by fraud, all recognised under the Indian Partnership Act, 1932. Hence "(i), (ii), (iii) and (iv) are correct."
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