Partners Are Not Liable to Their Partnership for Losses Resulting

question 53

Multiple Choice

Partners are not liable to their partnership for losses resulting from:

• A)gross negligence.
• B)reckless conduct.
• C)intentional violation of the law.
• D)honest errors in judgment.

---

Definitions:

Personal Defenses

Legal defenses used in a lawsuit that are specific to the defendant, often relating to the contract's validity or terms.

Fraud in the Inducement

A deceitful act causing someone to enter into an agreement or contract by misrepresenting material facts or intentions.

Holder in Due Course

A party in possession of a negotiable instrument, such as a check or promissory note, acquired in good faith and thus protected against many defenses.

Negotiable Instrument

An official document certifying the payment of a particular sum of cash, either to be paid on demand or at an agreed-upon time, with the payer's name mentioned in the document.