Nora and Owen do business as Profit & Property, a real estate investment partnership. In acting on the firm's behalf in a deal with Village Mall, Nora takes advantage of an opportunity to make a secret profit on her own behalf. To her firm, Nora is liable for
A) breach of the duty of care.
B) breach of contract.
C) breach of the duty of loyalty.
D) nothing.

Question

Nora and Owen do business as Profit & Property, a real estate investment partnership. In acting on the firm's behalf in a deal with Village Mall, Nora takes advantage of an opportunity to make a secret profit on her own behalf. To her firm, Nora is liable for
A) ​breach of the duty of care.
B) ​breach of contract.
C) ​breach of the duty of loyalty.
D) ​nothing.

Quizplus · Accepted Answer

Nora has breached the duty of loyalty by making a secret profit on her own behalf while acting on behalf of the partnership. This duty requires partners to act in the best interest of the partnership and to avoid self-dealing or conflicts of interest. Nora's actions have benefited herself at the expense of the partnership, making her liable for breach of this duty.

Nora and Owen Do Business as Profit & Property, a Real