Sec. 152.206. PARTNER'S DUTY OF CARE. (a) A partner's duty of care to the partnership and the other partners is to act in the conduct and winding up of the partnership business with the care an ordinarily prudent person would exercise in similar circumstances.
(b) An error in judgment does not by itself constitute a breach of the duty of care.
(c) A partner is presumed to satisfy the duty of care if the partner acts on an informed basis and in compliance with Section 152.204(b).
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Structure Texas Statutes
Chapter 152 - General Partnerships
Subchapter D. Relationship Between Partners and Between Partners and Partnerships
Section 152.201. Admission as Partner
Section 152.202. Credits of and Charges to Partner
Section 152.203. Rights and Duties of Partner
Section 152.204. General Standards of Partner's Conduct
Section 152.205. Partner's Duty of Loyalty
Section 152.206. Partner's Duty of Care
Section 152.207. Standards of Conduct Applicable to Person Winding Up Partnership Business
Section 152.209. Decision-Making Requirement
Section 152.210. Partner's Liability to Partnership and Other Partners
Section 152.211. Remedies of Partnership and Partners
Section 152.212. Books and Records of Partnership
Section 152.213. Information Regarding Partnership
Section 152.214. Certain Third-Party Obligations Not Affected