What fiduciary duty requires partners to avoid competing with the partnership?

The fiduciary duty that requires partners to avoid competing with the partnership is known as the duty of loyalty. This duty mandates that partners act in the best interests of the partnership and its goals. When partners engage in competition with the partnership, they are prioritizing their own interests over the collective interests of the partnership, which can lead to conflicts and harm the business.

The duty of loyalty encompasses several obligations, including avoiding situations where a partner could profit at the expense of the partnership and not engaging in ventures that directly compete with the partnership’s business. This ensures that all partners are committed to the success of the partnership rather than pursuing their own independent business interests that could detract from the partnership's objectives.

Other duties, such as the duty to disclose, duty of care, and duty of fairness, serve different purposes. The duty to disclose relates to sharing important information with partners, the duty of care requires partners to act with a level of competence and diligence, and the duty of fairness typically involves equitable treatment but does not specifically address competition issues. Thus, the duty of loyalty is the primary fiduciary duty that governs a partner's obligations to avoid competing with the partnership.