What is one of the primary responsibilities of partners in a partnership?

One of the primary responsibilities of partners in a partnership is to perform due diligence and act in good faith. This obligation is rooted in the fiduciary duty partners have towards one another and towards the partnership itself. Fiduciary duties require partners to act loyally and in the best interest of the partnership, sharing information and acting transparently when it comes to the management and affairs of the business.

Due diligence involves a thorough investigation and careful consideration of the partnership’s business actions and decisions, ensuring that all partners are making informed choices that could significantly impact the partnership's success. Good faith means acting honestly and fairly towards each other, fostering trust and collaboration essential for the partnership's sustainability.

In contrast, maintaining competition among partners can lead to conflicts and inefficiencies, while focusing solely on maximizing individual profit undermines the partnership's collective goal. Avoiding conflicts at all costs might not be practical and could lead to unaddressed issues that affect the partnership adversely. Therefore, the duty to perform due diligence and act in good faith is intrinsic to the functioning and success of a partnership.