Question 2. Has she violated any duties to Paulo?

In addition to their work at BigCorp, Inez and Paulo have a hobby of “flipping” homes, where they purchase homes in disrepair, fix them up, and sell them for a profit. Inez and Paulo form a general partnership to flip houses for a profit. One day while driving around, Inez sees a house that was recently listed for sale that would be a perfect house to flip. She immediately buys it herself and doesn’t tell Paulo. She fixes it up and sells it for a profit, which she keeps. Has she violated any duties to Paulo?

A. Yes, she has usurped partnership business and violated the duty of loyalty.

B. Yes, she has engaged in self-dealing and violated the duty of loyalty.

C. Yes, she has failed to obey their partnership agreement and violated the duty of obedience.

D. No, she has not breached any duty.

Правильный ответ:

A. Yes, she has usurped partnership business and violated the duty of loyalty.

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