What is a fiduciary duty that partners owe to each other in a partnership?

In a partnership, partners have a fiduciary duty to uphold a duty of loyalty and care to one another. This means they must act in good faith and with the utmost honesty, prioritizing the interests of the partnership over their own personal interests. The duty of loyalty prohibits a partner from engaging in self-dealing or taking opportunities that should belong to the partnership for their own benefit.

The duty of care requires partners to handle the affairs of the partnership with the same degree of care that a reasonably prudent person would use in similar circumstances. This encompasses making informed decisions, acting diligently, and not engaging in reckless behavior that could harm the partnership.

In contrast, the other options reflect duties or behaviors inconsistent with the obligations partners owe one another. A duty of transparency and disclosure is important but is encompassed within the broader duty of loyalty. Competing against each other runs counter to the very nature of a partnership, where members are expected to collaborate toward shared goals. Lastly, the obligation to maximize personal profit contradicts the fundamental fiduciary responsibilities of partners, as they must instead seek the collective benefit of the partnership.