Nora and Owen do business as Profit & Property, a real estate investment partnership. In acting on the firm's behalf in a deal with Quaint 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 Quaint 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

As a partner of Profit & Property, Nora owes a duty of loyalty to the partnership and its other partners, which includes the duty to act in the best interests of the partnership and not to personally benefit from any deals or opportunities that belong to the partnership. By making a secret profit on her own behalf, Nora breaches this duty of loyalty and is therefore liable to the firm for such breach.

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