Identify and briefly discuss the management rights and duties of a partner.

Question

What will be an ideal response?

Answer 1

Each partner has equal rights in the management and conduct of the business, unless the partners agree otherwise. If the partnership is large, usually one or a few partners are designated as managing partners or members of an executive committee. Partners are agents of the partnership and have the power to bind the partnership through actual, implied, or apparent authority. Unless otherwise agreed, all partners have an equal vote, regardless of their contributions to the partnership. The UPA gives each partner the right to inspect and copy the partnership's books and records.?In addition to rights, partners have certain duties, which are mandatory: the duties of care, loyalty, and good faith and fair dealing. Partners are liable to the partnership for gross negligence, reckless conduct, intentional misconduct, or a knowing violation of the law. Partners are not liable for ordinary negligence. Under the duty of loyalty, partners have the duty not to compete with the partnership, not to take a business opportunity away from the partnership unless the other partners consent, to turn over to the partnership any profit earned from the use of partnership property without the consent of the partners, and to avoid conflicts of interest. Partners have an obligation of good faith and fair dealing to each other and to the partnership.