Amina,Bill,and Connor carried on business in partnership as hardware merchants.Bill,who did most of the purchasing of stock for the partnership,would occasionally purchase (using his own money)an extra quantity of some items that could readily be sold to consumers.He would use the truck owned by the business on the weekends to travel to his cottage where he would sell the items to cottage owners in the area of his own cottage.Amina and Connor were unaware of Bill's actions,as B had not revealed his weekend business activity to either Amina or Connor.
-Because Bill was not selling the goods in the area where Amina,Bill,and Connor carry on business,he is entitled to keep his profits.

Question

Quizplus · Accepted Answer

Bill's actions constitute a breach of his fiduciary duty to the partnership. As a partner, any profit he earns from using partnership resources or purchasing items that should have been for the partnership belongs to the partnership. Amina and Connor have the right to claim a portion of the profits earned from Bill's activity.

Amina,Bill,and Connor Carried on Business in Partnership as Hardware Merchants