Question

The partner of a partnership entered into a contract with an outsider favouring him personally, ignoring the interest of partnership firm. What value is ignored?

Answer 1

The partner of a partnership entered into a contract with an outsider favoring him personally, ignoring the interest of partnership firm. By doing this he ignored the following values of partnership :

1. Value of honesty and integrity - By entering into a contract where he was favored personally, he lost his integrity and did not be honest to his firm and his partners. He had his personal interest in mind rather than the firm's interest.
2. Breach of mutual trust - He broke the trust of his partners by getting favors.
3. Not giving full disclosure- He did not provide the whole information regarding the contract to his partners and thereby ignoring the value of partnership.