A partner violates his duty of loyalty if he personally takes advantage of a business opportunity that would have benefited the partnership.
When partners want to operate a business for profit then it is said to be a partnership. For the best interest of the business partners must trust and rely on one another. This kind of relationship is built on good faith, loyalty, and fairness.
The partners' duties in a general partnership are to benefit the partnership and its members. All partners are bound to pertain to their legal duty in accordance with the best interest of the partnership act and other partnership terms. Partners are basically liable for all contracts entered into by other partners.
Partners have unlimited liability and they may be found liable for fraud or breach of contract committed by other partners. Whatever partners do relies on trust and loyalty. In case the partners leave the business the duty of loyalty ends.
Therefore loyalty of partners is considered important in a partnership.
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