Which statement best describes the fiduciary duties owed by partners?

Which statement best describes the fiduciary duties owed by partners?

• A. Loyalty and care
• B. Care
• C. Loyalty
• D. None

Answer: (A)

Partners in a general partnership owe fiduciary duties to the partnership and to one another. The two central duties are loyalty and care. Loyalty means putting the partnership’s interests first, avoiding conflicts of interest, not competing with the partnership, and not diverting partnership opportunities for personal gain, along with keeping confidential information secure. Care means acting with reasonable diligence and prudence in managing partnership affairs—reviewing information, making informed decisions, and avoiding gross negligence or reckless behavior. Together, these duties describe the full fiduciary obligations partners carry. That’s why describing them as loyalty and care is the best answer. Options that mention only one duty or none omit essential obligations.

Partners in a general partnership owe fiduciary duties to the partnership and to one another. The two central duties are loyalty and care. Loyalty means putting the partnership’s interests first, avoiding conflicts of interest, not competing with the partnership, and not diverting partnership opportunities for personal gain, along with keeping confidential information secure. Care means acting with reasonable diligence and prudence in managing partnership affairs—reviewing information, making informed decisions, and avoiding gross negligence or reckless behavior. Together, these duties describe the full fiduciary obligations partners carry. That’s why describing them as loyalty and care is the best answer. Options that mention only one duty or none omit essential obligations.