What does a partner's duty to exercise loyalty and good faith mean?
A)Even a trivial breach of the partnership agreement will justify dissolution.
B)The partnership contract must be observed scrupulously.
C)A partner may seize an opportunity that conflicts with the interests of the partnership only if he does not use assets of the partnership in the transaction.
D)A partner must put the firm's interest above personal advantage until profits are made.

Question

Quizplus · Accepted Answer

The duty of loyalty and good faith requires partners to act in the best interests of the partnership and to avoid conflicts of interest. This means that partners must observe the partnership contract scrupulously and may not seize opportunities that conflict with the interests of the partnership.

What Does a Partner's Duty to Exercise Loyalty and Good