RC Business Law Comparison of General and Limited Partnerships Discussion

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Comparison of general and limited partnerships

Student’s Name
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Comparison of general and limited partnerships
Legal and Ethical Duties and Responsibilities of a General Partnership
In all aspects relevant to the partnership, partners have a fiduciary relationship with one
another. Honesty, good faith, fairness, and loyalty characterize the partnership relationship. The
duty of good faith and fair dealing begins with the preliminary negotiations that lead to the
formation of the partnership and continues throughout the partnership’s life, culminating with the
dissolution and final settlement of the partnership’s affairs (Whittaker & Machell, 2021). Even
when relationships between partners are strained, the partners must maintain the highest degree
of good faith in all partnership business dealings (Ellis, 2021). After the partnership is dissolved,
the duty of good faith and fair dealing remains through the winding up and final settlement of all
partnership business and affairs.
Partners must always put the partnership’s interests ahead of their own personal or
business interests. Partners must refrain from self-dealing and prevent conflicts of interest
between their duties as partners and their own personal or corporate interests as part of their duty
of loyalty. Any information about the partnership and its operations that could influence a
partner’s interest in the partnership must be adequately disclosed to other partners (Ellis, 2021).
This contains any information about future business prospects, partnership contributions,
contracts signed, and partnership finances and activities (Ellis, 2021). Partners must also declare
any potential conflict…