Ace the Agency & Partnership Bar Exam 2026 – Boost Your Legal Superpowers!

Competing with the partnership without consent is a clear example of a breach of fiduciary duty within the context of partnerships. Partners in a partnership owe each other a fiduciary duty, which includes the obligation to act in the best interests of the partnership and not to engage in activities that would harm the partnership or its business interests.

When a partner competes against the partnership, it undermines this duty as it places the partner's personal interests above those of the partnership. This act not only distracts from the collaborative effort required in a partnership but can also deplete the partnership’s resources and goodwill, thereby damaging the overall enterprise.

Refusing to attend partnership meetings may reflect poorly on a partner’s participation and commitment but does not necessarily rise to the level of betrayal that constitutes a breach of fiduciary duty. Discussing partnership challenges with outsiders can breach confidentiality, but it does not directly negate the interests of the partnership in the manner that competing does. Lastly, having disagreements among partners is a normal aspect of partnership dynamics, reflecting differences in opinion rather than a violation of a fiduciary obligation.

Therefore, the act of competing with the partnership without consent distinctly violates the trust and responsibility partners are expected to uphold, making it a clear breach of fiduciary duty