Which of the following statements is true regarding the duty of care, if any, that one partner owes to another?
A) The duty of care is not involved in the law of partnership.
B) The duty of care is owed by each partner to the partnership itself, but partners do not owe a duty of care among themselves.
C) Partners owe a duty of care among themselves, but only in regard to transactions involving over $5,000.
D) While partners owe a duty of care to each other, a partner who makes an honest mistake in fulfilling responsibilities to the partnership will not be held liable for the mistake.
E) Partners owe a duty of care to each other, and a partner is liable to other partners on a strict liability basis for any mistakes or errors made.

Question

Quizplus · Accepted Answer

Partners owe a duty of care to each other, but the law recognizes that honest mistakes can happen. Therefore, a partner who makes an honest mistake in the course of fulfilling their responsibilities to the partnership is not automatically held liable for that mistake. This approach balances the need for partners to act in the partnership's best interest with the understanding that errors can occur without negligence or bad faith.

Which of the Following Statements Is True Regarding the Duty