State how the equitable principle of utmost good faith is manifested in the daily operations of a partnership

State how the equitable principle of utmost good faith is manifested in the daily operations of a partnership

ANSWER

A partner may not engage in a competing business without the consent of other partners.

1. A partner who makes a secret profit without the consent of the other partners must account to the firm.
2. A partner who has a personal interest in a contract made the firm is bound to disclose the same to the other partners.
3. A partner can only be expelled from the firm in good faith.