1.2 Fiduciary Duty in Law of Partnership
The traditional treatment of fiduciary duty in the law of partnership, however, closely followed that of the law of trust. Until recently, the fiduciary duty owed among partners dictated a “duty of finest loyalty” similar to that demanded of a trustee to his or her beneficiary:
Joint adventures, like corporations, owe to one another, while the enterprise continues the duty of the finest loyalty. Many forms of conduct permissible in a workaday world for those operating at arm’s length are forbidden to those bound by fiduciary ties. A trustee is held to something stricter than the morals of the market place. Not honesty alone, but the punctilio of an honor the most sensitive, is then the standard of behavior.