Can an industrial partner engage in business for themselves without consent from other partners?

In a partnership, the duties owed by partners to one another generally include the obligation to act in the best interests of the partnership and to seek the consent of the other partners before engaging in business activities that might compete with the partnership’s business. This principle is rooted in the idea of fiduciary duties, where partners are expected to maintain loyalty and good faith towards one another.

Therefore, an industrial partner cannot engage in business for themselves without obtaining consent from the other partners. Such actions could create conflicts of interest or divert business opportunities away from the partnership, which would violate the trust inherent in the partnership relationship. This requirement helps to protect the interests of all partners involved and ensures that the partnership can operate cohesively towards its shared goals.

In contrast, the notions of different business activities or disclosures do not absolve a partner from the necessity of obtaining the consent of their partners. While a partnership agreement might tailor specific terms related to individual business activities, the general rule remains that consent is a crucial element when partners consider engaging in activities outside the partnership’s business scope.