Can a partner compete with the partnership during its operation?

In the context of partnerships, partners have a fiduciary duty to one another, which includes the obligation to act in the best interest of the partnership. This duty prohibits partners from engaging in activities that would compete with the partnership’s business during its operation. Such competition can undermine the partnership’s profits and overall viability, thus breaching that fiduciary obligation.

Consent from all partners can potentially allow for competition, but absent such consent, competition would indeed breach the fiduciary duty owed to the partnership. This principle emphasizes the trust and loyalty that partners are expected to maintain towards each other and the business they have formed together. Therefore, the assertion is that competition is prohibited unless there is explicit agreement among all partners, which aligns with the basic tenets of partnership law regarding fiduciary duties.