Business Law: Relation of Partners

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Questions and Answers

Which of the following are considered general duties of partners?

Carrying business for common advantage
Rendering information to legal representatives
Disclosing material facts in transactions
All of the above (correct)

A partner must observe good faith in dealings with other partners.

True (A)

What must a partner do if he commits fraud in the conduct of the business?

Indemnify for the loss caused by fraud.

What determines the rights and duties of partners in a firm?

Contract between the partners (D) Signup and view all the answers

What is prohibited by agreements in restraint of trade concerning partners?

Carrying on any business other than that of the firm. Signup and view all the answers

What right does every partner have concerning the conduct of the business?

The right to take part in the conduct of the business. Signup and view all the answers

Study Notes

Relation of Partners to One Another

Partners must act for the firm's greatest common advantage, provide full information to other partners, and maintain utmost good faith.
Accounts must be rendered to each other, and the partner responsible for keeping them is responsible for explanations.
Partners committing fraud in the business must make good the loss caused.
The rights and duties of partners can be expressed or implied through contracts, and can be varied with the consent of all partners.
Agreements in restraint of trade are allowed to prevent partners from pursuing other business while in the partnership.
All partners have the right to participate in the conduct of the business and are bound to attend diligently to their duties.

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Description

Explore the essential principles governing the relationship among partners in business partnerships. This quiz covers aspects such as fiduciary duties, rights, responsibilities, and the implications of fraud and trade restraints. Test your understanding of how partners should interact for the common benefit of the firm.